Menu
18/11/2010
Central Bank Governor Expects 'Substantial Loan'
The governor of Ireland's Central Bank has announced he expects the State to accept a 'substantial loan' from the EU.
Patrick Honohan said this morning that a sum up to "tens of billions" would be expected in order for Ireland to secure its banks.
Mr Honohan's comments coincide with a statement from the the European Commissioner for Economic and Monetary Affairs, Olli Rehn, who last night described the Irish Government as being committed to “intensifying the technical talks” aimed at dealing with the “serious problems” in the Irish banking sector.
Accepting a loan from the EU is expected to carry harsh conditions that could challenge elements of Ireland's sovereignty and ability to control its own economic decisions.
The Government will be negotiating frantically to prevent any increase in the €6 billion adjustment proposed for the 2011 budget and the €15 billion four-year plan adjustment, but it is unclear if the current austerity measures will be extended under the conditions of the increasingly probable loan deal.
Speaking on RTÉ's Morning Ireland, Mr Honohan said the negotiations were not about a "bailout", but would lead to a loan of tens of billions to Ireland, and that the Government would have to accept it.
Finance Minister Brian Lenihan is today attending talks, involving an analyst team from the European Commission, the European Central Bank, and the International Monetary Fund in Dublin to discuss the loan.
It is believed the same team were dispatched to Greece shortly before it was bailed out by the European Union earlier this year.
However, Mr Honohan did agree with yesterday's comments by Mr Lenihan that the deal being negotiated may not entail an actual transfer of money now, but just a demonstration of how much money could be made available to Ireland from the Eropean Central Bank (ECB) if "further difficulties materialised".
A move that would hopefully placate international traders, whose uncertainty has been aggravating Ireland's heavy borrowing costs.
The Central Bank Governor said Ireland's banks had the facilities to deal with the outflows of money Ireland was experiencing after its downgrading from the AAA credit rating and that IMF/ECB money as contingent funding which can be shown to international investors but does not have to be used.
(DW/GK)
Patrick Honohan said this morning that a sum up to "tens of billions" would be expected in order for Ireland to secure its banks.
Mr Honohan's comments coincide with a statement from the the European Commissioner for Economic and Monetary Affairs, Olli Rehn, who last night described the Irish Government as being committed to “intensifying the technical talks” aimed at dealing with the “serious problems” in the Irish banking sector.
Accepting a loan from the EU is expected to carry harsh conditions that could challenge elements of Ireland's sovereignty and ability to control its own economic decisions.
The Government will be negotiating frantically to prevent any increase in the €6 billion adjustment proposed for the 2011 budget and the €15 billion four-year plan adjustment, but it is unclear if the current austerity measures will be extended under the conditions of the increasingly probable loan deal.
Speaking on RTÉ's Morning Ireland, Mr Honohan said the negotiations were not about a "bailout", but would lead to a loan of tens of billions to Ireland, and that the Government would have to accept it.
Finance Minister Brian Lenihan is today attending talks, involving an analyst team from the European Commission, the European Central Bank, and the International Monetary Fund in Dublin to discuss the loan.
It is believed the same team were dispatched to Greece shortly before it was bailed out by the European Union earlier this year.
However, Mr Honohan did agree with yesterday's comments by Mr Lenihan that the deal being negotiated may not entail an actual transfer of money now, but just a demonstration of how much money could be made available to Ireland from the Eropean Central Bank (ECB) if "further difficulties materialised".
A move that would hopefully placate international traders, whose uncertainty has been aggravating Ireland's heavy borrowing costs.
The Central Bank Governor said Ireland's banks had the facilities to deal with the outflows of money Ireland was experiencing after its downgrading from the AAA credit rating and that IMF/ECB money as contingent funding which can be shown to international investors but does not have to be used.
(DW/GK)
Related UK National News Stories
Click here for the latest headlines.
05 May 2011
Bank Of England Maintains Bank Rate At 0.5%
The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £200 billion. The previous change in Bank Rate was a reduction of 0.5 percentage points to 0.
Bank Of England Maintains Bank Rate At 0.5%
The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £200 billion. The previous change in Bank Rate was a reduction of 0.5 percentage points to 0.
25 November 2011
Changes To EU Arrangement Agreed
France, Germany and Italy have agreed to propose changing EU treaties to "improve governance" of the eurozone, the French President Nicolas Sarkozy announced on Thursday.
Changes To EU Arrangement Agreed
France, Germany and Italy have agreed to propose changing EU treaties to "improve governance" of the eurozone, the French President Nicolas Sarkozy announced on Thursday.
04 March 2010
Interest Rates Held Again
The Bank of England today held interest rates at 0.5%, as widely predicted. Monetary Policy Committee members also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £200 billion. The previous change in bank rate was a reduction of 0.5 points to 0.5% on 5 March 2009.
Interest Rates Held Again
The Bank of England today held interest rates at 0.5%, as widely predicted. Monetary Policy Committee members also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £200 billion. The previous change in bank rate was a reduction of 0.5 points to 0.5% on 5 March 2009.
02 December 2009
PM's Question's Centre On Recession
Gordon Brown defended his predictions on the length and depth of the UK recession during a heated Prime Minister's Questions today. Opposition leader David Cameron said the government's forecasts were wrong, suggesting the UK was the only leading world economy still in contraction.
PM's Question's Centre On Recession
Gordon Brown defended his predictions on the length and depth of the UK recession during a heated Prime Minister's Questions today. Opposition leader David Cameron said the government's forecasts were wrong, suggesting the UK was the only leading world economy still in contraction.
19 May 2008
40% Drop In House Sales According To RICS
Sales of houses could fall by 40% this year according to a study by the Royal Institution of Chartered Surveyors (RICS). RICS warned this rapid decline will effect house buyers who are looking for a mortgage as the credit crunch bites. Adding further to property owners woes, prices are to slip by around 5%.
40% Drop In House Sales According To RICS
Sales of houses could fall by 40% this year according to a study by the Royal Institution of Chartered Surveyors (RICS). RICS warned this rapid decline will effect house buyers who are looking for a mortgage as the credit crunch bites. Adding further to property owners woes, prices are to slip by around 5%.
-
Northern Ireland WeatherToday:After a dry start this morning rain will spread from the northwest across all parts. This afternoon will be dull with some patchy rain and drizzle. Becoming much milder through the afternoon. Maximum temperature 11 °C.Tonight:A cloudy evening and night with a little light rain or drizzle, perhaps some clear periods developing along the east coast. A very mild night everywhere. Minimum temperature 10 °C.
