Ireland Admits Its Banks Desperately Need A Bailout

Bank of Ireland

Ireland is reportedly in the process of accepting a bailout — for its banks at least.


EU sources have told Reuters over the past two days that talks on a possible bailout were under way and that Ireland, with borrowing costs rocketing, was unlikely to hold out without assistance.

Ireland did not rule out the possibility that it may have to turn to the European Union for help in dealing with its debt crisis on Sunday as its officials hold discussions with European counterparts.

The Irish Independent said Finance Minister Brian Lenihan may ask his European counterparts in Brussels on Tuesday if it would be possible to funnel funds into Irish banks which he has already promised to pump up to 50 billion euros ($68.38 billion) into.

The government remains adamant about not requiring its own bailout however:

“There is no question about Irish sovereign debt – the question remains about the funding of the banks. The banks are having trouble getting money,” the newspaper quoted the source as saying.

The Irish 10-year yield remains below its recent peak, at 8.16%, thus so far markets appear to be cautiously accepting the situation.

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