Investors Expect Ireland to Default on Credit (AIB, IRE)
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According to a recent Bloomberg Global Poll, 51 percent of investors that responded expect the Irish government to default on it sovereign debt, as weeks of work by the country to alleviate concerns over its creditworthiness have not appeared to meet goals.
The government in Ireland is finishing a plan to come up with 15 billion euros ($20.1 billion) in savings.
For the 13th consecutive day, Irish 10-year bonds dropped yesterday, pushing the yield up 26 basis points to 8.89 percent and the risk premium over benchmark German 10-year bunds to 646 basis points from 619 on Nov. 10.
The "Celtic Tiger" could draw from the 750 billion euro stabilization fund that has been set up by the European Union and International Monetary Fund. The government says that it has no plans to borrow money until next year and is currently not looking at seeking such assistance from the rescue fund.
“There is no reason why Ireland shouldn’t be able to go back to bond markets next year,” Patrick Honohan, governor of the Irish central bank, said.
The government in Ireland is finishing a plan to come up with 15 billion euros ($20.1 billion) in savings.
For the 13th consecutive day, Irish 10-year bonds dropped yesterday, pushing the yield up 26 basis points to 8.89 percent and the risk premium over benchmark German 10-year bunds to 646 basis points from 619 on Nov. 10.
The "Celtic Tiger" could draw from the 750 billion euro stabilization fund that has been set up by the European Union and International Monetary Fund. The government says that it has no plans to borrow money until next year and is currently not looking at seeking such assistance from the rescue fund.
“There is no reason why Ireland shouldn’t be able to go back to bond markets next year,” Patrick Honohan, governor of the Irish central bank, said.
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