24 Nov 2010

Bond investors not reassured by bailout for Ireland

10:27 am on 24 November 2010

Despite a bailout for Ireland, bond investors in Europe do not seem to be that reassured.

Spain's borrowing costs rose sharply in an auction for short term funds.

Spain's economy is worth more than the European Union's bailout fund and worth about 10% of the overall eurozone economy.

And Portugal says its deficit has widened in the first 10 months of the year.

Spending increased nearly 3% compared with the same time last year.

On Sunday, EU members and the International Monetary Fund agreed to provide loans of up to 90 billion euros (£77 billion, $US124 billion) in an attempt to bring an end to the crisis surrounding the Irish Republic's debts.

The crisis was brought on by the global recession and an almost total collapse of the country's banks.