This is true

As far as I understood, all private creditors to irish banks have ceased to lend new money since fall 2008. So the exposure of private foreign and domestic creditors is steadily shrinking.

However, just because it's shrinking it doesn't mean the exposure of the private sector is small. In fact, if the British, French and German private sector hadn't been hugely exposed to Irish debt there wouldnt' have been a bailout at all last November.

See The Guardian: Ireland bailout: the Datablog guide to who will fund it, which countries are most exposed - and who will be next? Visualised (November 22, 2010)

Ireland bailout: the Datablog guide to who will fund it, which countries are most exposed - and who will be next?

Ireland's bailout negotiations for a bailout are under intense scrutiny. But where's the money coming from - and which countries in the world have the most claims by foreign banks?
Get the data
Interactive guide

(link to infographic)

Keynesianism is intellectually hard, as evidenced by the inability of many trained economists to get it - Paul Krugman