Archive for the ‘Ireland’ category

Euro steadies as Ireland bail out agreement is finalised.

November 29, 2010


The euro steadied against the dollar as currency markets opened today after it was confirmed that the Ireland’s EU bail out had been finalised.

Having earlier fallen to its lowest level since 21 September at $1.3181, the euro rebounded to $1.3200 and steadied out over the course of the morning.

Ministers finally closed the 85 billion euro bail-out agreement in Brussels yesterday, easing concerns of total economic crisis in the Irish Republic.

Irish Prime Minister Brian Cowen said that the bail-out was the “best available deal for Ireland” providing “vital time and space to successfully and conclusively address the problems we’ve been dealing with since the financial crisis began”.

He said that 10b euros would immediately be injected into the capital reserves of its banks.

European policy makers had also convened to discuss growing concerns over Spain and Portugal who are thought to be next in line for EU assistance.

Last week saw Portugal announce its deepest spending cuts in more than three decades in an attempt to reduce its debt to EU limits by 2012 and Spain too has taken precautionary measures to limit the threat of foreign investment withdrawal.

Ireland’s Credit Rating Downgraded

August 25, 2010

Standard & Poor’s, the leading credit rating agency, has downgraded Ireland’s rating to AA- from AA.  It has also increased the projected net debt of GDP to 113 which is quite a jump from last year’s debt which was around 65% of GDP.

The news comes as another blow to Ireland, which is struggling to recover from the effects of the recession, having had its formerly booming property market collapse.

Since then it has been consigned to the unpopular PIIGS group – the euro zone nations that have threatened to drag down the entire euro currency zone.  Portugal, Italy, Ireland, Greece and Spain have all been tackling severe public debts.

Britain, whose debts are stiff competition for any of those nations, is able to avoid quite as much blame, being as it is not a euro currency nation.