Tag: Ireland

ECB holds rates and expands bond programme

ECB holds rates and expands bond programme

As expected, the European Central Bank (ECB) today elected to keep interest rates on hold at the record low of 1% for the 19th consecutive month. There were suggestions that the bank might have taken drastic action in order to address the debt crisis, currently engulfing the euro zone. However, the ECB said it will [...]

December 2, 2010 | 0 Comments More
Portugal reiterates it does not require financial assistance

Portugal reiterates it does not require financial assistance

Portugal has, once again, denied that it does not require an EU bailout as speculation mounts that it will follow Greece and Ireland and request emergency funds. The euro has been falling over recent days over debt concerns in the euro zone. The single currency is falling as investors are nervous that the debt crisis [...]

December 1, 2010 | 0 Comments More
Spanish borrowing costs surge

Spanish borrowing costs surge

Fears of contagion were raised again today after Spain’s borrowing costs surged to 5.330% from 5.148% - an eight-year high. Markets are nervous about the current euro zone situation and fears are growing that Spain and Portugal could be next in line for a bailout as yields on 10-year bonds rise to dangerous levels – [...]

November 29, 2010 | 0 Comments More
Euro falls despite Irish bailout

Euro falls despite Irish bailout

The euro has today hit a fresh low despite news that Ireland’s rescue package has been signed off. The single currency dipped to $1.3181 - its lowest level since late September - as investors digested the news of Ireland‘s bailout. Full details of the rescue package, which is worth €85 billion (£72 billion), will be [...]

Bank of Ireland looking to raise €2.2bn

Bank of Ireland looking to raise €2.2bn

Bank of Ireland has today revealed it is looking to raise €2.2 billion (£1.86 billion) of capital, in a move designed to meet the conditions of the country’s bailout package. The capital raising would bring the crisis-torn lender close to nationalisation. The bank is currently 36% owned by the Government and the news emerged shortly [...]

Ireland’s rescue deal to be signed off

Ireland’s rescue deal to be signed off

The bailout package for Ireland has finally been signed off after days of negotiation between the Irish authorities, the EU, the European Central Bank and the International Monetary Fund (IMF). Full details of the rescue package, which is worth €85 billion (£72 billion), will be confirmed by the Irish Government once it has been approved [...]

November 28, 2010 | 0 Comments More
Portugal under pressure to seek bailout

Portugal under pressure to seek bailout

A German newspaper has today reported that Portugal is under pressure to seek emergency aid from the EU rescue fund - something which the country strongly denies. Today, the Financial Times Deutschland reported that a number of euro zone nations and the European Central Bank were urging Portugal to follow Ireland and Greece and seek [...]

November 26, 2010 | 0 Comments More
OECD confident for euro zone’s future

OECD confident for euro zone’s future

As more doom and gloom surrounds the euro zone economy, the Organisation for Economic Cooperation and Development (OECD) has today issued a positive statement and suggested that “the euro as a currency has a long life, it is alive, well and kicking”. Fears have been raised that the 16-nation euro currency will fail in the [...]

November 25, 2010 | 0 Comments More
Euro zone situation is serious but no chance of collapse

Euro zone situation is serious but no chance of collapse

There are fears that the debt crisis in Ireland will spread to Spain and Portugal - and other weak euro zone economies. However, Klaus Regling of the European Financial Stability Facility has stated it is “inconceivable” that the 16-nation euro currency will fail. The Irish debt crisis has caused the euro to fall more than [...]

Ireland unveils tough austerity measures

Ireland unveils tough austerity measures

Ireland’s Government has today, as expected, outlined its four-year austerity plan, in a move designed to bring down the country’s ballooning budget deficit. Ireland is aiming to save €15 billion (£13 billion) between 2011 and the end of 2014 – 11% of the economy‘s annual output. The measures include a reduction in the minimum wage [...]

November 24, 2010 | 0 Comments More
Ireland to outline its four-year austerity package

Ireland to outline its four-year austerity package

Ireland will become the latest euro zone nation to unveil unpopular austerity measures, in a move designed to bring down the country’s budget deficit. Many other nations have introduced similar measures but they are likely to cause protests and trade unions have already warned of “civil unrest”. Ireland is aiming to save €15 billion (£13 [...]

Borrowing costs surge in Spain and Portugal

Borrowing costs surge in Spain and Portugal

Once again, fears for Portugal and Spain are raised as borrowing costs surge to high levels as Ireland’s debt crisis looks set to spread. Yields on 10-year Portuguese bonds rose to 6.9% - mimicking what happened in Greece and Ireland - just before they were forced to seek emergency aid. Meanwhile, 10-year Spanish bonds surged [...]

FTSE falls to 6-week low, hopes pinned on US

FTSE falls to 6-week low, hopes pinned on US

The UK’s FTSE 100 index dropped to a 6-week low today as the euro zone debt crisis continues to weigh heavily on investors minds, despite the imminent bailout for Ireland. The index lost 36 points to 5,644.48 by 8:57 am after earlier falling to 5,614.65 - its lowest since the beginning of October. So far [...]

November 23, 2010 | 0 Comments More
Portugal and Spain could be next in line for bailout

Portugal and Spain could be next in line for bailout

Jean-Claude Juncker, Luxembourg Prime Minister and Eurogroup Chairman, has warned that Ireland’s debt crisis could spread to Portugal and Spain, despite assurances from both countries that Ireland’s emergency bailout will allay investors fears. Today, Portuguese Prime Minister, Jose Socrates, said it “has no need for any aid” and insisted that its difficulties are different to [...]

November 22, 2010 | 0 Comments More
Irish bailout brings political uncertainty

Irish bailout brings political uncertainty

The emergency bailout for Ireland has resulted in political uncertainty after the Green Party (a partner in the Government) called for a general election. The Green Party’s leader, John Gormley, said: “We have now reached a point where the Irish people need political certainty to take them beyond the coming two months. “So, we believe [...]

Ireland in €90bn bailout

Ireland in €90bn bailout

Ireland’s Prime Minister, Brian Cowen, announced last night that his Government has made a formal request for an emergency bailout. In the euro zone’s second emergency rescue this year, Ireland will receive between €80 and €90 billion but the country’s finance minister, Brian Lenihan, said a precise figure has not been determined. The loan will [...]

Ireland in emergency talks as bailout looms

Ireland in emergency talks as bailout looms

Irish finance minister, Brian Lenihan, has today said the country is preparing to make a formal request for an emergency bailout. The exact amount of the loan, which will come from the EU rescue fund, which was established by European Governments and the International Monetary Fund after the Greek debt crisis earlier this year, was [...]

November 21, 2010 | 0 Comments More
IMF-EU officials investigate Ireland’s books

IMF-EU officials investigate Ireland’s books

As Ireland looks set to accept a multi-billion euro loan, the International Monetary Fund (IMF) and EU officials have commenced their investigation of Ireland’s bank books. Yesterday, Governor of the Irish central bank, Patrick Honohan, said the country is expected to accept a “very substantial loan”. The news comes as speculation has been mounting all [...]

November 19, 2010 | 0 Comments More
Ireland expected to accept bailout loan

Ireland expected to accept bailout loan

According to the Governor of the Irish central bank, Patrick Honohan, Ireland is expected to accept a “very substantial loan”. The news comes as speculation has been mounting all week as to whether Ireland would accept emergency funding - something which its Government continues to deny, insisting it is fully funded until at least the [...]

November 18, 2010 | 0 Comments More
Euro zone nations work to convince Ireland to ask for help

Euro zone nations work to convince Ireland to ask for help

Yesterday’s meeting in Brussels of euro zone finance ministers concluded with failing to convince Ireland to ask for financial aid. The Irish Government continues to reject a bailout, insisting it is fully funded until at least the middle of next year. However, the country’s financial situation was described as “our most pressing challenge” by EU’s [...]

November 17, 2010 | 0 Comments More