By Claire West
Irish Republic to get bail-out loan
The Irish government is expected to announce whether it will accept a substantial bail-out package from the EU shortly. Coming after the Irish Central Bank governor Patrick Honohan has said he expects the Irish Republic to accept a “very substantial loan” as part of an EU-backed bail-out.
Mark O’Sullivan, director of dealings at Currencies Direct commented, “The pressure on the Irish to accept a European Union-IMF rescue package continues to gather pace.
As confidence drains from the Irish banking system, the ECB is forced to lend even more to keep the banks capiltised.
With the Irish intent on keeping their low corporate tax regime intact, a cornerstone of Irish economic policy and the lowest in Europe and added to the mix the fact that the Irish are fully funded until mid 2011, this high game of bluff will continue.
The ECB cannot let the situation continue but unless the bailout can be sugar coated and sold to the Irish public as a rescue of the rotten Irish banking system and also allow Ireland to keep their low tax corporate status then Dublin will continue to resist.”