Ireland Seeks Bailout as ‘Outsized’ Problem Overwhelms Nation!
- How does this EUD$100 of new debt (bailout) solve Ireland’s debt problem? If you are bankrupt, do you think the bank will lend your even more money to bail you out? This ECB bailout is subterfuge. It is the taking over of Ireland and using the MSM to sell it in positive light. You cannot solve a debt problem with more debts! It will lead to an even bigger debt problem.
- Ireland has always resisted the British and resisted joining the EU and this is the method by which Ireland will be dissolved into the EU. The bailout monies will go to British, French and German banks. This is simply the ‘raping’ of the Irish sheeple ie make them pay for the debts owed by Irish banksters to Illuminist banksters!
Ireland Seeks Bailout as ‘Outsized’ Problem Overwhelms Nation
Ireland applied for a bailout to help fund itself and save its banks, becoming the second euro member to seek a rescue from the European Union and the International Monetary Fund.
Irish Prime Minister Brian Cowen said he expects talks on the package to be completed in the “next few weeks.” Finance Minister Brian Lenihan said the loan will be less than 100 billion euros ($137 billion), though he refused to give any further details at a press conference in Dublin today.
“A small sovereign like Ireland faced with an outsized problem that we have in our banking sector, cannot on its own address all those problems,” Lenihan said. Ireland may not draw down on the entire loan, he said. The bailout follows two years of budget cuts that failed to restore market confidence as the cost of shoring up the financial industry climbed. After Irish bond yields soared in the past month, European authorities pushed Ireland to seek aid to prevent the crisis that began in Greece this year from spreading to other euro-area countries such as Portugal.
“It was inevitable. Ireland had no choice but to get financial help,” said Nicholas Stamenkovic, a fixed-income strategist in Edinburgh at RIA Capital Markets Ltd., a broker for money managers. “The market will still be waiting for the details of the assistance and the conditionality, but there should be a relief rally tomorrow.”
The cost of saving Ireland’s banks threatens a rerun of the Greek debt crisis that destabilized the euro region earlier this year. Lenihan said Ireland’s banks need a “contingent capital” fund and he indicated that the state will not be able to borrow in bond markets next year at current interest rates.
While the banks have been directed by the country’s financial regulator to have core Tier 1 capital ratios of at least 8 percent, Cowen said that “clearly, the markets are looking for perhaps a higher capital ratio.” “Stress testing will obviously have to be undertaken in relation to the banking system” to determine how much capital may be needed, Cowen said.
Ireland’s lenders are reeling from the collapse of the property market in 2008, while the government’s finances have been eroded by the recession. An unprecedented budget deficit — equaling one-third of economic output this year — sent bond yields to all-time highs. Allied Irish Banks Plc, Ireland’s second-biggest bank, emphasized the fragility of the financial system on Nov. 19, reporting a 17 percent decline in deposits this year.
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