ireland real estate

Ireland's Austerity Budget:
Not Likely to Avoid Default

Despite its planned austerity budget, the long-term solvency of Ireland is still in doubt. Simply put, the losses which Irish taxpayers must cover are larger than the nation's economy can support, making sovereign debt default likely even with a promised bailout from the EU and IMF.

Ireland to Overhaul Banking Sector as Part of Rescue Package

Ireland officially applied for a rescue package worth tens of billions of dollars from the EU and IMF in a bid to stabilize its banking system and avoid economic meltdown. The exact value of the rescue package isn%u2019t clear. Goldman Sachs Group (GS) estimated that it may total 95 billion euros, ($135 billion), Bloomberg News reported.

Europe and IMF to Discuss Aid Package for Irish Banks

European and International Monetary Fund officials will meet in Dublin tomorrow to discuss the possibility of aid for Ireland%u2019s ailing banking sector. "If banking problems are too big for this small country to manage, Europe has made it clear they%u2019ll help," Irish Finance Minister Brian Lenihan said, according to Bloomberg News.

Ireland in Talks With European Officials About 'Market Conditions'

Ireland is in talks with European officials about "market conditions" amid widespread speculation that the country will accept some form of bailout. "Ongoing contacts continue at official level with international colleagues in light of current market conditions," a Finance Ministry spokesman said in an email late yesterday, Bloomberg News reported.

EU Will Support Ireland 'If Needed'

Jose Manuel Barroso, president of the European Commission, said the EU would support Ireland "if needed" as concerns grow about the country%u2019s public finances. Yields on Irish bonds have hit record highs, a sign investors are worried about the country%u2019s ability to meet all its debt obligations, BBC News said.

Ireland Bank Bailout Could Cost $68 Billion

The Irish government is working to take majority control of one troubled lender, Allied Irish Banks (AIB), and to inject yet more cash into another, Anglo Irish Bank Corp. The moves could take the cost of Ireland%u2019s bank bailout to as much as 50 billion euros ($68 billion), according to Bloomberg News.