Skip to comments.Ireland Faces Double Dip, Mulls Restructuring Of Junior Bank Debt
Posted on 09/23/2010 5:39:55 PM PDT by blam
Ireland Faces Double Dip, Mulls Restructuring Of Junior Bank Debt
Irish borrowing costs have surged to a post-EMU record after Ireland's recovery buckled over the summer and Dublin said creditors of Anglo Irish Bank may be asked to "share" losses, a warning to bondholders that the dam may at last be breaking on debt restructuring in the eurozone.
By Ambrose Evans-Pritchard
Published: 7:24PM BST 23 Sep 2010
Brian Lenihan, the finance minister, sent shivers through debt markets by refusing to rule out a haircut for holders of Anglo's ?2.4bn subordinated debt Photo: PA
Dublin city centre. Spreads on Ireland's 10-year bonds have risen to 405 basis points Photo: Oli Scarff Ireland has been praised for grasping the nettle early in its debt crisis with public sector wage cuts of 13pc Photo: Paul Grover The Irish economy contracted at a 1.2pc rate in the second quarter, making Ireland the first country since the Great Recession to face a double-dip downturn. The setback is blow for hopes that Ireland can slowly grow its way out of debt, and may renew concerns that fiscal austerity without other forms of relief risks tipping the economy into a self-reinforcing spiral.
Ireland has been praised for grasping the nettle early in its debt crisis with public sector wage cuts of 13pc, leading the way for other eurozone debtors in trouble. But the reward for good behaviour has yet to come.
(Excerpt) Read more at telegraph.co.uk ...
The time to invest is when the blood is running in the streets. Stalwart Bank of Ireland (IRE) has been running near an all-time low for quite some time. I have loaded up! Might take a few years, but Ireland will rebound.
Extreme as in anti-Mohammedan, anti-socialist, pro-nationalism/culture/language/religion.
Good articale. Thanks.