- Sep 10, 2008
Ireland is fully funded until mid-2011, however I've heard this morning that certain European investors are no longer willing to provide Irish banks with overnight funding. This could lead to a serious liquidity problem for the Irish banks - and some investors believe that Ireland may need to borrow from the IMF or the EFSF to support the banks.
And some comments from officials, first from the Financial Times: Barroso reaffirms offer of help to Ireland
José Manuel Barroso, European Commission president, said ... What is important to know is that we have all the essential instruments in place in the European Union and eurozone to act if necessary, but I am not going to make any speculation.Both the Irish Central bank governor Patrick Honohan (See: IMF would use same fiscal policy - Honohan) and the Irish Finance Minister Brian Lenihan said today they believe Ireland will not need help (See: Irish FinMin: c.bank comments not laying ground for help).
excerpt with permission
The Ireland 10-year bond yield is at 8.9%.
Its getting Stormy out there!
Calculated Risk: Ireland: Bank funding problems?