Ireland has finally come to the debt crisis of the EU to the rescue and relief, but the conditions attached to aid programs but may be very harsh, yesterday, Moody's warned that Ireland is likely to be substantially lower ratings. At the same time, the opposition to come forward position of Portugal, said the country's debt-GDP accounted for 112% rather than the government previously reported 82%.Analysis pointed out that if Portugal was relief, then the problem will soon transfer to Italy and Spain, by which time the euro zone or to the precarious situation.
80 billion euros rescue planEU and Ireland preliminary agreement on rescue plan reached on Sunday, local time, the EU finance ministers to support the submission of the total value of 80 billion euros, a 3-year rescue plan, but talks still in progress, may change the amount of aid .Ireland's aid program aims to help repair the country's budget deficit and ease the financial strain the banking part of the rescue plan, the Irish government will order the country's bank restructuring. Analysis pointed out that this may lead to the country's two largest banks, Bank of Ireland and Allied Irish Bank reduced its size.
Brian Cowen pointed out that banks have to Remove the "unnecessary assets", which is considered to include such non-core operating assets of overseas assets.Irish government said aid would fund most of the losses the bank may be added, and the goal is to help the bank has sufficient funds to prevent investors worried about the custom printing plastic bag banks bad debts. Irish Finance Minister Han said that the expected capital injection plan will improve the government's stake in the bank.Irish government has pledged to inject 50 billion euros to banks of funds, which is equivalent to 1 year in the country's economic output, but the market is still worried about saving the Irish banks may face a greater shortfall.
The composition of funds, IMF assistance would be likely to provide one-third of the Irish relief funds, but the bulk of funding comes from the EU financial stability mechanism, while the remaining funds will come from the European Union Administration, the European Commission and the United Kingdom and Sweden.Germany accounted for the largest share of EFSF, therefore, the state may be the greatest contribution for the relief of Ireland the country. It is said that in the United Kingdom and the European Union in the IMF's share of calculation, the United Kingdom may be invested seven billion pounds.Ireland was significantly lower ratings orIn fact, the debt crisis, the Irish government consistently opposed the acceptance of outside assistance.Ireland is due to the previously refused to accept relief aid means that their tax and spending policy will be subject to external restrictions.
According to the relevant provisions of the European Union
Stabilization Fund, relief can only occur only when the relevant national
requirements, in the previous two weeks, the Irish government has been refusing
to accept aid.Ireland's worries are not groundless, German Finance Minister
Wolfgang in a German television station ZDF on Sunday interview, said that
Ireland will accept the stringent conditions of relief, but he does not point
out the specific details of the conditions. Wolfgang that, for the relief of
Ireland will not reduce the debt problems also exist other European countries,
the pressure.Of circumstance, this hard-line stance rapid inflow of funds
eventually broken by the signs of Ireland, the Government has finally succumbed
this week the pressure from the European Union, and acknowledged the need for
external assistance to ease the public finances and banks are facing financial
pressure.Ireland will be announced on Thursday its 4-year budget reduction plan,
which the Government is by all means to prevent the already strapped budget of
more intense, because aid programs often want to attach stringent deficit
reduction plan.Moody's credit outlook in its weekly still said that the
sovereignty of Ireland after an assessment of credit rating is very likely the
country's current "Aa2" rating down multiple levels. However, the rating agency
said that in the lower, Ireland's rating may still be maintained at investment
grade.Just set in Ireland, when the debt crisis, the Portuguese began an
emergency. The opposition recently said that the Portuguese government deficit
and debt problems lie, the actual debt-GDP ratio should be 112% rather than 82%.