Irish Banks Sink on Expectations Banks Heading Toward More State Ownership

"Irish banks Allied Irish Bank (AIB) and Bank of Ireland (IRE) are lower amid expectations that the banks are heading toward greater state ownership, AP reports.

There is deep skepticism that an international bailout loan -- whose details are expected to be unveiled Sunday -- will be enough for Ireland to resolve its debts, the story said.

Speculative media reports in Dublin and Brussels fueled nervousness, with claims that the International Monetary Fund and European Central Bank experts driving the loan talks in Dublin would like to make Ireland's senior bondholders -- chiefly foreign banks -- eat losses in Ireland's debt-crippled banks.

AIB was last down 12.48% and IRE down 8.86%."

Ireland Struggling Economy

World Business: Ireland, once one of Europe's hottest economies is in a sorry state. Laden with debt, but desperate to avoid asking for help from the IMF and EU, the country has to take drastic action. With four companies going bust every day, and unemployment soaring, it will take all the luck of the Irish to get out of this economic mess.Reporter: Diana Muriel

Ireland Announces 4-year Plan to Raise $20B

The AP is reporting that Ireland has unveiled the most severe budget cutbacks in its history on Wednesday. The country mired in debt has announced a four-year plan of spending cuts and tax hikes to raise 15 billion euros ($20 billion).

Approximately 24,000 state employees could lose their jobs in the process and the sales tax could rise to 23%. The 2011-2014 plan will shave 10 billion euros ($13.3 billion) from spending and bring in 5 billion euros ($6.7 billion) from extra taxes.

The austerity plan is a prerequisite for Ireland to receive an EU-IMF loan estimated at 85 billion euros ($115 billion). Ireland is hoping its deficit, estimated to reach a record 32% this year, will fall to 3% of GDP by 2014.

Greece austerity programme on track

Greece's International lenders have cleared the way for the country to receive the next installment of its $150bn bailout package.

Officials from the EU and IMF say while its austerity programme remains largely on track, Greece needs to make an "extra effort" to reduce its budget deficit.




Meanwhile, rubbish collectors in Athens, Greece's capital, have been on strike for days, protesting cuts in wages and benefits imposed by austerity measures.

Barnaby Phillips reports from Athens.

Ireland Debt Problems Ready to Cross the Pond

Former IMF Executive Desmond Lachman discusses why Irelands debt woes could spread like wildfire.

European Debt Union: Ireland in Euro Cage

Rt discusses Irish bailout with British conservative MP Douglas Carswell.

Dubliners Angry Over Bailout

itnnews--November 22, 2010--Dublin residents have expressed anger and disappointment over the application to the EU and IMF for a rescue package.