Rise in Value of Eurozone Benefits Ireland

An optimistic coverage from a key European bank is said to have acted as a morale boost for the Government. Having spread over Germany at 3.7pc, the ten-year money was seen to be trading at 6.13pc following the shutting down of markets in Dublin.

Subsequent to the reports stating the sustainability of the budget deficits are in Ireland and Portugal, both the countries are said to have come under pressure. With Greece still undergoing the high borrow costs pressure, Spain is said to have made an escape.

"Ireland is also in an extremely strong financing position. This year's funding needs have almost all been met. We estimate next year's financing needs to be a manageable _30bn", a statement read.

Barclays Bank talked about the need to have an outside assistance if the bank rescue costs happened to rise above what was expected. There have been some declines in the value of the euro, which is said to have proved to be very beneficial for Ireland, as it has augmented the competitiveness and rate of exports.

Citi Bank economist William Buiter asserted that that he was quite doubtful if the Irish Government would be able to pay back the bank bondholders and sovereign bondholders together.