Financial aid for Irish banks higher than expected

Ireland holds the bonds markets in its grasp, due to the enormous amount of money it will have to cough up in order to save the Irish banks. The Irish government underestimated the financial aid their primary banks needed widely, and therefore the budget deficit, which they wanted to stabilize at 12% of the GDP, will rise to 32%.  Worst case scenario, Ireland will have to borrow money from the European Financial Stability Facility, which is a fund helping out euro-zone countries. But for now, no such aid is necessary; thanks to the big efforts the Irish government has made, signs of improvement and stabilization are starting to show up.

http://www.economist.com/node/17155947

Lucas Buyse