EU Gives Ireland 24 Hours To Seek Bailout
Dublin, Ireland, United Kingdom (AHN) – Pressure is increasing for Ireland to make a decision on the offer of a financial bailout by the European Central Bank or the International Monetary Fund.
Dublin was given just 24 hours to decide if it will accept the offer to prevent the negative impact of another Irish economic crisis on the 16-nation eurozone.
Finance ministers from the zone are scheduled to hold emergency meetings Tuesday night, while global financial markets are waiting for Dublin’s move to finalize negotiations with the EU.
Fund managers are urging the Irish government to accept the EU bailout offer or face harder times ahead if they delay their decision.
Even before Ireland agrees to the bailout offer, borrowing cost for Dublin has gone done following reports of the ECB financial lifeline offer. Yield on benchmark 10-year Irish bonds went down to 8.1 percent from last week’s 9 percent. Premium sought by investors to hold on to their Irish bonds over the standard German bunds or spread also decreased to 545 basis points from 652 basis points on Thursday.
Irish officials are still balking at the proposed bailout because of the probable loss of sovereignty. The fast-paced developments may possibly result in the Irish government announcing the 2011 budget a week earlier than the previous Dec. 7 schedule.
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