Thaindian News

November 22, 2010 (Pen Men at Work): Ireland finance minister’s admission that Ireland was in need of financial help has prompted the European Union and International Monetary Fund to try bail out Ireland from its dire crisis. Ireland needs tens of billions of Euros to rescue its economy and try salvaging some financial stability.

Brian Lenihan has spoken of the significance of saving the Irish currency and the Irish banking system. But the investors remain wary particularly since the magnitude of EU and IMF aid is still unknown. Negotiations are currently on between the financial bodies and Irish govt. as the latter would have to restructure its debts and cut down on its budgetary deficit.

Despite the precariousness of the situation, the market hasn’t seen any major upheaval. Only a marginal fall was noted in the yields on Irish, Portuguese and Spanish bonds. Euro, later, made marginal gain but overall the response was lukewarm. Even though the Irish bailout is a favourable one there are uncertainties regarding Ireland’s corporate tax rate. Despite a promised financial aid, Ireland is still under murky waters and economists feel that it’s getting too optimistic with its growth forecasts.