Monday, November 29, 2010

Ireland Gets a $90 Billion Dollar Bailout by IMF And EU

IMF contribution means US contribution. The domestic fall out from the coming cuts are going to be ugly. It is possible this could turn into another strong blow against the EU.

"Ireland on Sunday reached agreement with the International Monetary Fund and the European Union for an emergency bailout package worth $90 billion, a rescue meant to both shore up that nation's buckling banks and confront investor fears that Dublin's problems are spreading to other European nations.

It remains unclear, however, if the deal would be enough to restore market confidence in other debt-laden E.U. nations, including Portugal and Spain, that have come under attack by investors in recent weeks and risked a run on the euro.

As part of the package, European financial chiefs agreed that investors, thus far shielded from losses in Ireland and Greece, which received a bailout in May, might need to take losses in future debt crises. Attempting to blunt market fears, however, they said such losses would not be automatic and would only happen in extreme circumstances.

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