Report: Ireland in preliminary bailout talks with EU
Ireland has been sounding out the European Union about possible financial assistance to help it out of its debt crisis, dpa quoted the BBC as reporting Saturday.
The report said preliminary talks were taking place, which could be a prelude to Dublin asking the European Financial Stability Fund for a bailout.
The fund was set up in May to help countries that get in the financial difficulties.
The BBC report said Ireland might seek between 60-80 billion euros (83-111 billion dollars) to help it deal with a sovereign debt crisis.
The German newspaper Welt am Sonntag said talks on an aid package would take place in Brussels next week.
The German report said Spain and Portugal were pressing for a bailout, similar to the one which helped Greece from going bankrupt earlier this year.
These two countries are also in a precarious financial situation and fear that if no action is taken to help Ireland, they too could be in trouble.
The Irish government this week denied it was seeking EU help, following jitters among international investors that it may not be able to repay its debts.
If those investors refuse to lend Ireland more money, the country will have to ask for a bailout from the EU.
This was reflected by soaring interest rates on Irish bonds, which hit 9.26 per cent Thursday.
Ireland's economic problems, caused by the burst of the property bubble and the international recession, were made worse by a multi-billion-euro bailout of the failed Anglo Irish Bank.