Cost of Irish borrowing continues to soar
The cost of borrowing for Ireland soared above the 9% mark this morning, the first time it has hit that level since the introduction of the euro.
The interest being charged on 10-year bonds at one stage this morning hit 9.25%.
Finance Minister Brian Lenihan blamed German comments about the possible default on sovereign debt for the recent rise, but also admitted that the markets have not been fully convinced about the cost of bailing out the banks here.
"We are assessing market reaction," Minister Lenihan said.
The minister said that the National Treasury Management Agency had advised him that the interest rate rises were "largely and exclusively" caused by uncertainty about the future of European sovereign debt.
"However there is no doubt in my mind that while the announcement about the banking sector in September was not disbelieved by the market, it wasn't fully believed either."
The EU meanwhile said it stands ready to support Ireland if needed, with European Commission President Jose Manuel Barroso saying all the essential instruments are in place to take action.
