Ireland won’t default says PM

Monday, 18 April 2011 09:56

Irish PM said the nation won’t default on its debt as he tries desperately to control the failout of todays issues with Greece. Irish, Greek and Portuguese bonds fell today amid mounting speculation Greece will have to restructure its debt as too many it is the only way to survive. 

All three countries have sought bailouts from the EU and IMF yet Ireland's government wants a reduction on the rate on its loans, which they think are too severe referring to the rate on the bailout and to medium term financing for lenders from the ECB.

Ireland’s government last month pledged to inject almost 24 billion euros into lenders after mounting losses forced the country to ask for a bailout. The finance minister added last week that it is important to reach an agreement on bailout rates before the country attempts new issues.

Irish bonds fell today, pushing the yield on the country’s 10-year debt to 9.76 % at the close of trading in London. The yield on Greek and Portuguese bonds of the same maturity rose to records. European shares declined, with the Stoxx Europe 600 Index dropping 1.7 % and UK stocks falling as well.