Ireland will contribute EUR 17 bln to its own bailout and a substantial amount of the package (EUR 22.5 bln) will come in the form of loan guarantees, not government cash.
EUR/USD is getting a knee-jerk lift in Asia as it so often does after a multi-billion EUR bailout is announced…It trades at 1.3284.
Bottom line: There are no haircuts required of holders of senior debt of Irish banks, so that relieves the most intense fears heading into the weekend. But the Irish package will do nothing to prevent the market from immediately turning its focus to the Iberian peninsula.
