Ireland says it does not need a bailout

Russell Padmore Nov 15, 2010
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Ireland says it does not need a bailout

Russell Padmore Nov 15, 2010
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TEXT OF STORY

JEREMY HOBSON: Ireland continues to insist it is not the next Greece — the country’s leaders say it does not need a bailout. Today the Irish government said it is working with European leaders to help stabilize its economy — but it insists that it can keep paying its bills for the foreseeable future.

So what’s the deal? Here’s The BBC’s Russell Padmore in London.


RUSSELL PADMORE: The Irish government insists it has enough money to last until next June, and it won’t need a bailout. In May, European countries orchestrated a $146 billion bailout for Greece. Now those same authorities believe it’s vital to stabilize the Euro currency, the Irish should accept a rescue package of more than $100 billion.

But Minister for Justice Dermot Ahern told Ireland’s RTE channel that rumours of a bailout were false.

DERMOT AHERN: It is fiction because what we want to do is get on with the business of bringing forward the four year plan, dealing with the budget, the first budget, which is a very important part and that’s where all our energies are.

The government’s reassurances did little to calm global markets. Investors are worried that the country won’t be able to pay back the debts it uses to finance government spending. And that has made it even more expensive for Ireland to borrow money. Plus, it has raised concerns that other heavily indebted European countries, like Portugal and Spain, may be in need of a bailout as well.

In London, I’m the BBC’s Russell Padmore for Marketplace.

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