The ECB may wipe out a large part of the Irish Economy

Economist Morgan Kelly

Economist Morgan Kelly’s warning that the European Central Bank is planning a “clean-up” of Irish banks will be taken seriously by government, Minister for Finance Michael Noonan has said.

In a lecture at University College Dublin, Prof Kelly said a clean up of SME bank loans by the European Central Bank may lead to large section of economy being “wiped out”.

Prof Kelly, who was the first economist to predict the likely scale of the Irish banking collapse, said the “real crisis” for the Irish economy may not yet have happened.

What the lecture here