–Adds Comments From Irish Central Bank Governor, Recent Market Moves
FRANKFURT (MNI) – Eurozone governments are preparing for a possible
Greece-style rescue for Ireland although the country has not yet asked
for financial assistance, German daily Handelsblatt reported Thursday,
citing German government sources.
“The rise in Irish yields are a cause for concern” which is why
Eurozone states are now examining whether Ireland needs liquidity
support from the European stability facility, the paper said.
While Ireland had not asked for help as yet, euro area governments
are preparing for the emergency contingency. “We are ready to help
Ireland on very short notice,” one of the sources told Handelsblatt.
Irish central bank Governor Patrick Honohan warned Wednesday that
Ireland’s current sovereign borrowing costs are unsustainable. “I’ll
readily say that the current rate is well above the rate at which one
would go back in [to the markets]. It is “unsustainable and you couldn’t
imagine them going forward,” Honohan said.
The Irish government thus far has assured that it will be able to
emerge from the current crisis without drawing on help from its euro
area partners.
Earlier Thursday, Irish 10-year bond spreads widened to a fresh
all-time EMU high at +640 bps above the benchmark German Bund.
–Frankfurt newsroom +49 69 72 01 42; Email: jtreeck@marketnews.com
[TOPICS: M$$EC$,MGX$$$,M$$CR$,MT$$$$,M$X$$$]
