Ireland Financial Crisis

Ireland Financial Crisis

Introduction of Ireland Financial Crisis 怡萱 The Impacts of the Crisis e pacts o t e C s s Relief Program  Relief Program Unified European Bonds Conclusion 婉婷 軒敏 佩宜

y •Economy Boom •Investors jump in the  markets •Real estate market  was thriving 

2008

EU carried out  Low Interest Rate policy EU carried out “Low Interest Rate” policy

Ireland was full of “Cheap Fund”

Government tried to  Promote Real Estate Government tried to “Promote Real Estate”   The bank lend money to people who  want to buy house with low rate 

The real estate market thrived rapidly Th l t t k t th i d idl

•Real Estate market declined •Irish banks could not retrieve Irish banks could not retrieve  the loans •Irish Government started  giving financial aid to the banks. giving financial aid to the banks.

y •Economy Boom •Investors jump in the  markets •Real estate market  was thriving 

2010 Nov 2008 2008 

2008

Ireland banks granted lots of loan  to the people When the economy went  down, people couldn’t pay the  debts to the banks d b h b k Government rescued the banks  with HUNDREDS of BILLIONS dollar

Bank Problem Bank Problem

32%

GDP

Financial Deficit

450% 400%

Financial industry takes important  role in Ireland

Bank Asset GDP

350% 300% 250% 200% 150% 100% 50% 0%

• •Real Estate market declined •Irish banks could not retrieve Irish banks could not retrieve  the loans •Irish Government started  giving financial aid to the banks. giving financial aid to the banks.

•

Ireland has been in a  “ENORMOUS  FINANCIAL CRISIS”    EU and England are in  urgent to rescue Ireland  except German

Today 2010 Dec 2010 Nov 2008 2008 

y •Economy Boom •Investors jump in the  markets •Real estate market  was thriving 

2008

The Impacts of  The Impacts of the Crisis

涂婉婷

The Impacts of  The Crisis

Domestic  bond  market

Foreign  Foreign a et market

Irish 10‐year government bond yield Irish 10...