(17 November 2010 – Europe) European economic affairs chief, Olli Rehn, has confirmed that the European Commission (EC) is currently in talks with the International Monetary Fund (IMF,) in an effort to resolve the Irish banking crisis.Mr Rehn told reporters, ahead of a meeting of eurozone finance ministers, that the Irish sovereign debt was funded until the middle of next year.
‘At the same time the commission together with the ECB and IMF and the Irish authorities are working in order to resolve the serious problems of the Irish banking sector,’ Mr Rehn said.
Mr Rehn added that he expects the Eurogroup (of finance ministers) to support the project.
This is not the first time this year the IMF has had to step in to assess a European countries financial stability.
In May the IMF bailed out Greece to the tune of €110 billion (A$151 billion) as the nation’s debt spiralled out-of-control.
The European commissioner brushed aside comparisons to the fiscal troubles of fellow eurozone countries Portugal and Spain and sought to ease fears of contagion through the rest of the single currency area.
‘Ireland is a very different case,’ Mr Rehn said.
‘This is not a matter of the survival of the euro, this is a matter of a very serious problem in the banking sector of Ireland and therefore we have to keep a cool head and determination to work in order to find solutions to the banking sector of Ireland.’