Ireland’s Central Bank Chief expects the Republic to accept tens of billions of euros in loans to bolster its shattered banks and stabilise the embattled economy.
There has been resistance to a bailout in Dublin, both on the streets and in the corridors of power but now it appears unavoidable.
“We are talking about a very substantial loan, for sure,” said Ireland’s Central Bank Governor Patrick Honohan. “Tens of billions, yes. I don’t know that any precision has been put on it at this stage yet.”
EU, IMF and European Central Bank experts are in Dublin for talks. However, Irish Prime Minister Brian
Cowen is remaining cautious.
“We are looking at what the best options are, both for Ireland and for the euro area generally, and we want to be open and constructive with that engagement,” he said. “And I think the government, at the end of the day, will make decisions based on the outcome of discussions which are ongoing today and over the next few days.”
Following in the footsteps of debt-ridden Greece is seen as a humiliation by many but, in desperate times desperate measures are needed, it seems, to get Ireland’s finances back on track.