Ireland to get IMF and EU loan. by Milota Sidorova

Ireland took the place that was so long expected to be taken by Spain or Portugal. After few weeks of denials and doubts it came out clearly, however, being honest, not surprisingly. Ireland with a deficiti summing somewhere around 26 percent has finally asked for „help“ or a loan from International Monetary Fund and EU save fund. Although Irish government tried to avoid of this situation, quoting the loan could come in the Spring, the breaking point came after just few days. And EU reply didn't take that long. Ireland got generous „yes“ to multibillion loan from Eurozone and Sweeden and Great Britain that keep their own currencies. So far the final ! amount of money hasn't been agreed but Irish representatives suggested it wouldn't be more than 100 billion euro. The loan will be divided into several payments during three years and this should be also the period in which it should be repaid. As most crucial reasons for the crash, however havent been benevolent taxing and social policies, but banks. Ireland has put beyong 50 billion of euro to its banks to insure them against all losses. Despite of this step paid by taxpayers, banks couldn't keep the pace and now they seem to be the fate of Ireland. Ireland has to borrow, yet, the conditions of the bailout are in the process of negotiations. IMF and EU suggested they wouldn't imply orders on Irish tax policies, but said they would be comfortable if Ireland cut enough of public spending. For Irish people it means certain tax increase and limit of „unnecessary“ spendings. But now it is 100 percent clear they are not paying for their own mistakes, but for inabili! ty of financial institutions. And EU must help, if it wants to! remain as it is.

related story (sgx18632): http://news.yahoo.com/s/ap/eu_ireland_financial_crisis;_ylt=...

by Milota Sidorova for Cantell TV (http://cantell.tv)

Cantell TV is the fastest growing provider of digital broadcasting coupled with telecommunications, allowing people to easily control, view, upload and share digital content through proprietary interface coupled with free phone calls. Cantell TV is committed to delivering infinite choices to your world of enterta! inment at the tip of your fingers.

Asian inflation and Europe debt crisis push stocks down by Zuzana Zelenakova

Stocks have been falling down after Chinese Prime Minister Wen Jiabao announced that China has to come up with some measures to battle inflation. Markets also fell after South Korea´s central bank raised interest rates to restrict growing inflation. "The fact that China is taking actions to tighten things up over there is having a big ripple effect here," said Bruce Simon, the chief investment officer at Ballentine Partners. Meanwhile, Ireland is still negotiating with European Union and International Monetary Fund financial aid package for its debt laden banks. “The market is not going to react very well because things are going to get worse before they get bet! ter,” said Sung Won Sohn, an economics professor at California State University- Channel Islands in Camarillo, California. “The sovereign financial crisis has not disappeared: it’s been postponed.” “At the request of the Irish authorities, an IMF team will participate in a short and focused consultation, together with the European Commission, and the ECB, in order to determine the best way to provide any necessary support to address market risks,” the Washington-based International Monetary Fund said in an e-mailed statement. Although European finance ministers have not agreed on bailing out Irish banks, they are definitely making steps to support financial system in Ireland and help it to recover. Even though Ireland´s situation is not the same as it was in case of Greece, which had to be bailed out by European countries and the IMF it has similar effects on markets. Both factors, inflation in Asia and debt crisis in Europe, have ca! used stocks to fell for a fourth day Tuesday. The Dow Jones in! dustrial average recorded its biggest one-day loss in three months. It fell 178.47, or 1.6 percent, to 11,023.50. The Standard & Poor's 500 index fell 19.41, or 1.6 percent, to 1,178.34. The Nasdaq composite index fell 43.98, or 1.8 percent, to 2,469.84.

related story (sgx18620): http://news.yahoo.com/s/ap/us_wall_street;_ylt=Ar_ODul2DKxrD...

by Zuzana Zelenakova for Cantell TV (http://cantell.tv)

Cantell TV is the fastest growing provider of digital broadcasting coupled with tel! ecommunications, allowing people to easily control, view, upload and share digital content through proprietary interface coupled with free phone calls. Cantell TV is committed to delivering infinite choices to your world of entertainment at the tip of your fingers.