6 officially and that its debt is about to fly

The Ireland has reassured the markets. While the rate of the country had reached Monday their more top level in relation to those of the German bonds since 1997, on a background of fears that it soon necessary to bail out the Irish State, Dublin has its bond placement, yesterday morning. The obligations that it has issued due 2014 due 2018, for a total of EUR 1.5 billion, have indeed found easily takers, causing a general relaxation of rates in the secondary market. But to do this, the Ireland had to pay a high price. "The shorter duty has sold 33 cents more expensive than the equivalent securities on the secondary market, before the show and the longest about 49.5 cents more expensive is a historical record in the euro area", observes Ciaran O'Hagan, Société Générale bond strategist.

The Irish Treasury said it sold a large proportion, to foreign investors the EUR 500 million of bonds 2014 with a coupon of 4,767 from 3,627 in a previous award in August, and 1 billion bonds 2018 with a coupon of 6,023, 5,088 in June. Above a certain level, raise money becomes too expensive and the country concerned must restructure its debt as it is completely outside of its control.

For Padhraic Garvey, the rate of ING Strategy pattern, "rates will have to rise by 7 to 8 until the game is over" for the Ireland. Gillian Edgeworth, of UniCredit, considers however that the country will not need to turn to the international monetary Fund (IMF) and the European Union, as some rumors the suggested last week.

A problem in another cache

The President of the Irish Central Bank, Patrick Honohan, recommended Monday that the Irish state cuts its budget deficit faster and requested a "reprogramming of budgetary profile" of his country "soon." A few hours later, the Minister of finance, Brian Lenihan, responded that a communication on the subject would take place in the second half of October and that he would give details on unrealised losses of the portfolio of assets remained in Anglo Irish Bank. "It is a sign that the Governor, known for its jurisdiction, is heard," according to Ciaran O'Hagan.

The Ireland has already announced three budgets of austerity in two years and has implemented a "bad bank" to absorb approximately 80 billion of toxic assets from banks in the country, which should all be transferred by February. This expedition was first impressed and reassured markets. But the concerns on the banking sector, which has greatly lost money in domestic commercial real estate, and especially Anglo Irish, who has already received a capital assistance of EUR 23 billion, have not been extinguished. At the time, the markets fear that the true budget deficit of the Ireland is greater than 20 against 11.6 officially, and that its debt is about to fly.

For Ciaran O'Hagan, there is however no risks in the short term on the financing of the country. "The Ireland may take until 2011, because it has reservations in its coffers, particularly in its pension fund, he explains." The country chooses to be present by issuing markets to ensure the liquidity of its loans to state: there is no back to the wall as it was the Greece. "According to this expert, the true risk will be within two to four years if nothing is done on the budget balances. Because, in his view, the market too focuses his attention on the problem of the banks, even if it is real: "the country has also a problem of budgetary revenue," he insists.