Fri Nov 12th, 2010 at 04:43:01 AM EST
RTÉ News: EU leaders seek to calm bond markets
The statement by France, Germany, Italy, Spain and Britain was issued in Seoul after spreads on Irish 10-year government bonds over German bunds surged to a record high, hitting the debt of Portugal and Spain and the euro.
'Whatever the debate within the euro area about the future permanent crisis resolution mechanism and the potential private sector involvement in that mechanism we are clear that this does not apply to any outstanding debt and any programme under current instruments,' the statement said.
The EU is looking at new rules for debt issued from 2013 that may entail private investors rolling over existing debts or to bear their share of losses, as has been the case in new contracts written into debt programmes of some emerging market issuers.
Big-five EU leaders to markets: you will suffer no haircut even if it kills us.
Update [2010-11-12 9:3:57 by Migeru]: This just in from Reuters: Ireland not in position where it needs outside help-Fin Min
Ireland is fully funded until June 2011 and has substantial cash reserves so it would make no sense to apply to the European Financial Stability Facility (EFSF) for help, Finance Minister Brian Lenihan said on Friday.
[editor's note, by Migeru]
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