Irish Debt Crisis Leads to Potential EU-Backed Bailout of Ireland’s Banks

November 18, 2010

Ireland (ChattahBox World News)—Although Irish government officials are keeping mum on the issue, the Irish Central Bank governor has confirmed that the Irish Republic will accept a loan from the EU in the “tens of billions” to stabilize the country’s financial systems, the BBC reports.

The Irish government has denied asking for aid, but officials from the IMF, the EU, and the European Central Bank are involved in meetings in Dublin to discuss the debt crisis. Ireland is conceivably hesitant to ask for the bailout because it would signal that the country’s “survival and solvency was reliant on Brussels,” the BBC reports. However, financial analysts have noted that the Irish government does not have a choice if the country wants to avert a devastating financial meltdown.

European stocks rose on the news that an Irish bailout was coming up the pike, but as recently as yesterday, the Irish government had not specifically requested financial assistance, which cannot be given without Ireland’s request, the BBC notes.


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