Deepening of Euro financial crisis may hit Ireland

Economists have warned a deepening of the Euro debt crisis could hurt the Irish economy.

The effect of the Greek sovereign debt problem could in turn affect the trust of international business in Europe and Ireland.

“I think it’s important that the issues be got under control sooner rather than later,” Barry O’Leary, chief executive of the IDA is quoted as saying in the Telegraph.

“The thing you have to be careful of is if Greece went wrong, what sort of knock-on effect there would be not just in Portugal and Spain but in countries like Italy and Belgium.”

Ireland is borrowing E67.5 billion in emergency loans from Europe, the IMF, UK and Denmark.

It was announced by the Irish Department of Finance and the Central Bank that all conditions required to be met in second quarter of 2011 by 30th June – set out by the EU and IMF – had been met.

As reported by the Irish Times, some of these conditions had been met only within a matter of days.

Nonetheless they were fulfilled to the satisfaction of all parties.

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