Related News
Irish vow to work with EU, IMF
By Daniel Flynn and Annika Breidthardt |
November 18, 2010, Thursday
|
Print Edition
Print Edition
IRELAND promised yesterday to work with a European Union-IMF mission on immediate steps to help its stricken banking sector, a process which could lead to a bailout which Dublin has so far resisted.
Euro zone finance ministers agreed late on Tuesday that a team of specialists from the European Commission, the International Monetary Fund and European Central Bank would travel to Ireland today to examine what measures may be needed if Dublin decided to seek aid.
"What's here now is a common determination that we work on these difficulties ... that work is well underway," Irish Finance Minister Brian Lenihan told state Irish broadcaster RTE.
Lenihan said euro zone peers had welcomed his four-year, 15 billion-euro budget-cutting strategy which he hopes to publish next week, suggesting he sees no need for further fiscal tightening.
"Our budgetary policy has full confidence among European partners. But in relation to banking, steps taken to date require further support," he said.
"What may be required may not in fact be an actual transfer of money now but demonstration of how much money can be made available if further difficulties materialise."
In an indication financial markets were unimpressed by Dublin's decision to reject assistance for now, the premium investors charge for holding Irish 10-year bonds rather than German Bunds rose to a near-record 595 basis points.
LCH.Clearnet, a clearing house for sovereign debt, doubled its margin requirement on Irish bonds to 30 percent of net positions, an indication of the increased risk of default.
The cost of insuring against default by Ireland jumped, with five-year credit default swaps widening by 25 basis points on the day to 545 bps, while those for Spain and Portugal also rose - a sign of the contagion that EU policymakers fear most.
The Irish government hopes to avoid a humiliating rescue that could further weaken its grip on power, with a by-election scheduled for November 25, a vote that could reduce the government's parliamentary majority to just two seats.
Lenihan dismissed suggestions that Ireland should raise its ultra-low 12.5 percent corporation tax rate to help cut its debt. Higher-tax countries, including Britain, have long seen the Irish rate as a form of unfair competition.
Euro zone finance ministers agreed late on Tuesday that a team of specialists from the European Commission, the International Monetary Fund and European Central Bank would travel to Ireland today to examine what measures may be needed if Dublin decided to seek aid.
"What's here now is a common determination that we work on these difficulties ... that work is well underway," Irish Finance Minister Brian Lenihan told state Irish broadcaster RTE.
Lenihan said euro zone peers had welcomed his four-year, 15 billion-euro budget-cutting strategy which he hopes to publish next week, suggesting he sees no need for further fiscal tightening.
"Our budgetary policy has full confidence among European partners. But in relation to banking, steps taken to date require further support," he said.
"What may be required may not in fact be an actual transfer of money now but demonstration of how much money can be made available if further difficulties materialise."
In an indication financial markets were unimpressed by Dublin's decision to reject assistance for now, the premium investors charge for holding Irish 10-year bonds rather than German Bunds rose to a near-record 595 basis points.
LCH.Clearnet, a clearing house for sovereign debt, doubled its margin requirement on Irish bonds to 30 percent of net positions, an indication of the increased risk of default.
The cost of insuring against default by Ireland jumped, with five-year credit default swaps widening by 25 basis points on the day to 545 bps, while those for Spain and Portugal also rose - a sign of the contagion that EU policymakers fear most.
The Irish government hopes to avoid a humiliating rescue that could further weaken its grip on power, with a by-election scheduled for November 25, a vote that could reduce the government's parliamentary majority to just two seats.
Lenihan dismissed suggestions that Ireland should raise its ultra-low 12.5 percent corporation tax rate to help cut its debt. Higher-tax countries, including Britain, have long seen the Irish rate as a form of unfair competition.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
