Although whether Greece will be supplied with a much needed bailout fund is a big cause for concern at the moment the Eurozone could soon have another funding issue to contend with.
According to top ratings agency Moody’s Investor Service Ireland – the first bailed-out Eurozone nation to productively return to borrowing on financial markets – will require a further round of fiscal aid when its present run comes to an end next year.
The Emerald Isle has so far managed to trim roughly 10 billion Euros from its previous funding needs. The slashes made in a January 2014 ‘funding cliff’ and the nation’s success so far has left many analysts feeling that Ireland is in a good position to secure enough money to fill the rest of the years funding requirements.
The majority of economists involved in a Reuters news survey don’t currently believe that a second bailout programme will prove needed. The Irish government has also stressed that it will not require and won’t be asking for further funding from European lenders.
Moody’s disagrees and announced today that it believes the country could well need more precautionary loans.
Last year Moody’s was also the only ratings agency to downgrade Ireland’s investment grade status to junk.
Although other top ratings agencies Standard and Poor’s and Fitch Investors Service have given Ireland a negative outlook they have kept the nations status three levels above junk, but Moody’s feels that its primary reasons for downgrading still stand.
In Moody’s most recent credit report for Ireland the agency commented: ‘Ireland has made preliminary steps in an attempt to return to markets on a sustained basis, from which it has been excluded since October 2010. The rating agency expects that the end of Ireland’s current European Union/International Monetary Fund support programme at year-end 2013 will prompt the need for official financing being available, possibly in the form of a precautionary programme.’
The agency went on to stress that although its assessment does not constitute a rating action its opinion was based on the continued risks to the nation’s deficit cutting plan from economic weaknesses at home and in the Eurozone as a whole.
As of 12:00 pm
The Pound to Euro exchange rate is currently trading at 1.2449
The Pound to US Dollar exchange rate is currently trading at 1.5867
The Pound to Australian Dollar exchange rate is currently trading at 1.5211
The Euro to US Dollar exchange rate is currently trading at 1.2739
The Euro to Pound exchange rate is currently trading at 0.8027
These Exchange rates are provided by TorFX, a leading foreign exchange broker, providing unbeatable exchange rates for all your currency needs.