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Ireland not going bankrupt -- NTMA

THE NATIONAL Treasury Management Agency (NTMA) has moved to dismiss international reports that Ireland is going bankrupt as the cost of borrowing shot up to 8.14pc.

Mark Grant, managing director at Southwest Securities, told Bloomberg TV that Ireland is going bankrupt.

He dismissed the European bailout fund, and said the country is running out of money and has only got about 60 days left of cash.

But the NTMA said that such reports were "totally incorrect".

"It is a matter of public record that this country is funded through to the middle of next year," the NTMA said in a statement. "To suggest otherwise is mischievous nonsense."

John Brynjolfsson, chief investment officer at Armored Wolf, also told Bloomberg that the Irish crisis is certainly worse than originally thought and is continuing to worsen all the time.

But he said the sovereign debt problem is bigger than just Ireland and says it is an ECB problem. He says the weak point in the eurozone is the euro, which continues to weaken.

Meanwhile, the interest rate demanded by investors to lend money to Ireland for 10 years stood at 8.14pc, while the spread between Irish and German Government bonds also set new highs for the seventh trading day in a row.