Weakening economy could necessitate second bailout loan for Ireland

A worsening of the economic outlook could force a second Irish bailout loan.

Carmel Crimmins in a Reuters news release comments that the Greek debt crisis could push Ireland into requiring an additional rescue loan to the package already planned.

Fear in the bond markets that Greece may eventually default on it’s loans could spread to other European states including Ireland.

In addition to some investors the financial situation in Ireland is a reason to stay away from government debt.

Even with the banking stress test some investors still do not have confidence in the strength of the banks, and this is a problem at the heart of the current crisis.

Article by LoansIreland.ie.