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Mancini Associates – Ireland’s “Dithering” Hurting Euro …

Todays Date: September 19, 2018

“Mancini Associates”: Ireland is reluctant to take bailout money despite EU member pressure.

“Mancini Associates”: Ireland is facing mounting pressure from fellow EU member states to accept bailout cash from the European Financial Stability Facility (EFSF).

Despite the responsible approach the country has shown towards deficit reduction, markets have rounded on its debt demanding higher and higher yields in return for assuming the risk associated with potential default.

Mancini Associates” analysts suggest that it is the threat of contagion in the debt of other EU members that has forced them to pressurize Ireland. One said, “Ireland doesn’t actually need to borrow money until June 2011 so the yields being asked for are largely irrelevant but the imbalances may create problems for other EU nations like Spain and Italy if Ireland refuses aid”.

Additionally, equity markets around the world are becoming more volatile as the implications of widespread contagion of the eurozone debt markets for the world’s banks spark worries of another financial crisis.

“Banks are exposed to some $1 trillion of Spanish sovereign debt and with Germany and France hinting that they may insist on so-called “haircuts” for holders of problem eurozone debt in the not-too-distant-future, the write-downs that characterized the sub-prime debacle may make an untimely return”, said a “Mancini Associates” analyst.

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