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Irish bail-out is still in dispute

Irish bail-out is still in dispute
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Ireland’s central bank governor’s statement about an expected bail-out is in conflict with messages coming from the Irish government, who say no money is needed.

Speaking on RTE’s Morning Ireland radio show on Thursday, Patrick Honohan confirmed that a rescue package, worth tens of billions of euros, was being put together. The money would come from European partners, and the IMF – who are already in Dublin.

Speaking from the Irish capital, IMF Spokeswoman, Caroline Atkinson said: “The mission that is there now, is looking at the situation, in particular, in the financial sector, given the concerns about market risks.”

However, the government is still hesitant about accepting any money, saying more talks are needed before it decides to make a formal application.

Irish Trade Minister, Batt O`Keefe said: “It is not wise at this point in time for anybody to be looking for fast decisions in relation to this matter.”

Ireland’s banking sector is in serious trouble. Borrowing costs from other banks have soared since late October, due to fears over their insolvency. Irish banks are now almost entirely reliant on funds from the European Central Bank.