Bank Chief Points To "Strong" Growth In 2012

The chief executive of the state's Central Bank has said there are some indications of "strong growth in output and employment" for 2012.

In an address to students at the Trinity College Dublin yesterday, Governor Patrick Honohan urged up and comers to stay in Ireland in order to benefit from the return to growth that he believes Ireland will experience and asked them not to "turn your back on Ireland".

Mr Honohan said: "If you do go abroad for better immediate prospects, I hope you will not turn your back on Ireland. I have worked abroad for a few years at a time on more than one occasion.

"I found returning after one or two years easy; after a third year the new roots were harder to pull up. Some authoritative analysts are forecasting quite strong growth in output and employment already in 2012."

The Chief's talk centered on the steps to recovery Ireland was undergoing, with most of his views converging with that of the Governments.

Mr Honohan said the Government's current recapitalization plan under the NAMA project would amount to a sizeable sum but would remain manageable.

During the speech he also backed the Government's recent reduction in private sector pay, saying that "wage restraint" was a major factor in recovering from the last recession in the mid-1980s.

There was some work still to be done, however. Mr Honohan urged banks to make money available to start up companies and release some money for loans to small and medium sized companies in order to get things going.

"It is important that the banks get going now on improving their techniques for making sound small business loans," he said.

(DW/GK)