Nooooooo! The €40bn was the debt from Haughey and Fitzgeralds governments that was incurred in the 1980s and never paid off during the celtic tiger era.
However solvent AAA rated Ireland was paying interest rates of around 4-5% on that small debt in the late 2000s
The Draghi legacy means less solvent and less AAA rated Ireland was issuing 10 year paper at 0.8% interest only last week.
In other words the servicing costs have tanked and we can service €200bn for not vastly more than we spent servicing €40bn 10 years back.
I do agree with Snaps that such low rates will not last forever and putting a proper dinge in that €200bn would be a great idea. But right now our DEBT/GDP ratio is around that of Germany and coming down faster and the premium for Irish debt over bunds is a small one now. Absent a major upheaval around Brexit time, we are finally safe.
However after 2020 (which will be funded in just over a year by the NTMA BTW) we only have around €10bn coming up for refinancing in any given year and higher interest rates will apply to that not to the whole pile of €200bn .
The long term legacy after 2020 is that we will spend €4.7-5bn servicing debt and that we spent €1.7-2bn before the crisis doing that.
€3bn net worse off every year, 1% of current GDP, unless we actually pay some of the debt off now and then.
Coulda been worse, thank fuck for Mario Draghi.