Ireland Opens Bank Books; Ready To Receive Bailout If Problems Are Too Big
It appears that Ireland is moving closer toward some kind of bailout. It is clear that Irish government want to keep some kind of fiscal independence and shift the focus toward bank problems, not country problems.
Bloomberg: Ireland Prepares to Open Books as EU Weighs Help for Banks.
European Union and International Monetary Fund experts will start scanning the books of Ireland’s debt-laden banks tomorrow in Dublin in a prelude to a possible aid package to stem Europe’s widening fiscal crisis.
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“If banking problems are too big for this small country to manage, Europe has made it clear they’ll help,” Irish Finance Minister Brian Lenihan told state broadcaster RTE today as meetings of European finance ministers wrapped up in Brussels.
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Such a package could come together quickly, the officials said. “Is it six months or a few days away? I’d say it’s closer to days,” French Finance Minister Christine Lagarde said.
German Irish 10 year bond spread stable…
Chart 1. Ireland vs. Germany 10 Year Government Bond Yield Spread
