Irish banks in crunch week

Steve Dinneen
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CRUNCH talks were underway last night to thrash out the details of an announcement on Anglo Irish bank, which could have far-reaching repercussions for the Irish economy.

Ministers are expected to release details of the cost of winding up the stricken lender and plans to restructure the bank’s bond debt.

The reaction of the markets to the announcement will be key to securing the financial stability of the Irish economy, which is struggling to contain the largest budget deficit in Europe.

Dublin’s borrowing costs soared to fresh highs over fears the burden of saving its banks from the disastrous property bubble, in which Anglo is heavily implicated, will tip Ireland into financial meltdown.

Ministers hope the markets will react positively and prevent the country from having to resort to a bailout from the IMF or the EU.