Share this article Share However, experts have warned that the humiliation of Ireland will have a domino effect, threatening the future of the euro. Fears are rising that Portugal might also need to be saved as the debt crisis tears across Europe, with Spain not far behind.
On Sunday, Ireland applied to the EU and the International Monetary Fund for a financial aid package to cover its fiscal needs and potential future capital requirements of its banking system.
But the effect may not last long. In the short-term, but not in the medium term.
It only calms down markets and gives the other countries some room to breathe. The origins of the debt problems of Ireland and Portugal are different — Ireland ran into problems because it had to help its banking sector, hit by the collapse of the real-estate market, while Portugal is suffering from low growth and lack of competitiveness.
But the end result was similar — a debt burden that markets see as difficult to carry. The underlying problem for market mistrust of debt of some euro zone countries may only be solved with a quick and detailed solution for all euro zone countries, rather than a piecemeal approach, economists said.
The problem is that the euro zone started to go about it the wrong way.
Reporting by Jan Strupczewski, editing by Jon Boyle.Nov 22, · On top of that contribution, Mr Cameron faces a choice of whether to give an extra loan directly to Ireland or to contribute even further to the EU and euro zone bailout.
The post Irish banking crisis was the situation whereby, due to the Great Recession, a number of Irish financial institutions faced almost imminent collapse due to insolvency. In response, the Irish government instigated a €64 billion bank bailout.
There was anger over the huge burden the bailout had put on Ireland's population. Now, three years on, Ireland has left the bailout programme. An imminent deal to postpone Ireland’s bailout repayments will be enough to secure a smooth exit from the EU-IMF programme later this year, according to the chief of the euro zone finance ministers.
The post Irish banking crisis was the situation whereby, due to the Great Recession, a number of Irish financial institutions faced almost imminent collapse due to insolvency. In response, the Irish government instigated a €64 billion bank bailout. By the way, this Irish bailout subject is really a good one, we all need to learn a little how our economies work.
Every country in the world has gone thru bad times sometime so this is a relevant subject.. especially when you connect this podcast with the previous one about the so called pigs.