18 Nov 2010

Support for Irish banks not to be taken for granted - ECB

12:51 pm on 18 November 2010

The European Union says continued support by the European Central Bank for Irish banks cannot be taken for granted, as pressure remains on Ireland to accept financial help.

Borrowing costs are high for Ireland, Portugal, Spain and Greece, and the EU is keen to let financial markets know it now has options in place to avert the confusion surrounding Greece's bailout.

A delegation of EU, IMF, and European Central Bank officials will visit Dublin to focus on moves to cut the country's budget deficit, and stabilise its banking sector.

Belgian finance minister Didier Reynders says the ECB's daily support for the Irish banking system with overnight liquidity can't go on forever.

Allega Asset Management director Norval Loftus says that sends a message to Dublin to accept financial aid.

Mr Loftus says by focusing on Ireland's banks, resistance may be lessened to fears of Ireland losing control over its own affairs if it accepts a rescue deal.