Ireland's central bank chief said on Thursday he expected the country to receive tens of billions of euros in loans from European partners and the IMF to help shore up its shattered banks and stabilize the economy.
Central bank governor Patrick Honohan was speaking shortly before the start of talks with a joint mission of the European Commission, the European Central Bank and the International Monetary Fund on a possible rescue package.
"The intention is and the expectation is, on their part and personally on my part, that negotiations or discussions will be effective and a loan will be made available and drawn down as necessary," he told state broadcaster RTE.
"We're talking about a very substantial loan for sure — tens of billions, yes," Honohan said, acknowledging that there had been substantial outflows of funds from the Irish banking sector since April.
Word is that we could see some 100 million euros thrown at the problem or more. Meanwhile, Greece continues to collapse under its own failure as sharp contractions in 2011 and 2012 mean that Greek citizens will have to tighten their belts even more as the country faces rapidly increasing unemployment. Austria has already said it will not make its bailout payment to Greece unless it meets economic targets, and that means bad news for already beleaguered Greeks.
Then Portugal may be next in line and then the big one: the UK, as they are involved in backing bailouts to everyone else. We'll see.
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