Ireland’s debt rating downgraded

Ireland’s debt was downgraded this morning. The downgrade was “primarily driven by the Irish government’s gradual but significant loss of financial strength, as reflected by its deteriorating debt affordability,” said Dietmar Hornung, a lead analyst for Ireland at Moody’s Investors Service.

Ireland went from an Aa1 to an Aa2. At the end of last year, Ireland’s debt-to-GDP ratio reached 64% and is still rising.

Of course, fears of a European collapse are ignited again. Ireland is part of collection of countries known as PIIGS. Portugal, India, Ireland, Greece and Spain, the countries with wavering economies.

Meanwhile, the IMF was in Hungary to discuss the $25 billion in aid that was sent in 2008 from IMF and the European Union. The talks did not go well, it seems.

The central governments of the EU, Germany in particular, are trying to send a strong message to the countries of Europe. German voters seem to be against bailing out more European nations.

Hungary is central Europe’s most indebted country with debt around 80% of GDP.

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Posted on July 19, 2010, in Global Biz and tagged , , , , , , , , , , , , , , , . Bookmark the permalink. Leave a comment.

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