Ireland in big trouble

Ireland have never accepted any financial aids from any country before. But this time, they are looking for help from other countries and group like International Monetary Fund and the European Central Bank because they cannot bailout by themselves.

 Ireland had been reluctant to accept any bailout that came with strings attached. But on Thursday, Finance Minister Brian Lenihan told the Irish Parliament that it would be a “very desirable outcome” if a contingency capital fund could be established with the European Union, the International Monetary Fund and the European Central Bank. Ben May, an economist with Capital Economics in London, said the size of any bailout would depend on what the examiners found on the books of the Irish banks. He said that 60 billion euros ($82 billion) might suffice if it was to cover only the government’s financing needs for the next few years but that more might be necessary to have firepower in reserve.

I personally do not understand why Ireland did not get loan from IMF or other countries earlier, but I think it is really good they are trying to get loan from them because South Korea was once in a financial deficit, and overcame it by getting loans from IMF. Of course it does not mean they are going to be a strong nation again, but they at least get a shot at becoming better country than they are right now.