Government to Watch Market Reaction to Bank Bailouts

Irish BankAll eyes will be on the markets again today to gauge their reaction to yesterday’s bank bailout announcements.

The final bill for Anglo Irish Bank is set to reach up to €34bn ($46.37bn) whilst a further €3bn ($4.09bn) is to be pumped into AIB before the end of the year, and the State will take a majority share in the bank.

The cost of borrowing for Ireland fell slightly yesterday from 6.7 to 6.5% for 10 year bonds in the wake of the announcements.

Stuart Duffy- an analyst at CMC markets – said Ireland’s announcements were at the centre of international attention.

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