Irish hoping for change of fortune with new Government

Published on August 31, 2011 by Anna Jay · No Comments

Could a change in the Irish government reverse the fortunes of an ailing economy?

The Irish public will be hoping that a change of Government can signal a change in the fortunes of the nation’s economy.

Having endured years of diminishing financial prospects under the stewardship of Bertie Aherne and Brian Cowen, hopes are high that the frugal building blocks put in place by the Fine Gael party can put the country back on a stable footing.

New Prime Minister Enda Kenny has been vocal in his criticism of the previous administration, and has already signalled his intention to make necessarily difficult cuts in a number of areas.

Moody’s, the powerful ratings agency, recently marked down the credit rating of several l Irish banks.

The decision is unlikely to affect savers; however those with money in offshore Irish banks are unlikely to be pleased with new ratings.

The banks directly affected by Moody’s downgrading of the Government guaranteed debt are Allied Irish, Anglo Irish, Bank of Ireland, EBS and Irish Life & Permanent.

Moody’s have stated that this particular downgrading does not affect its other ratings on the banks, which includes the rating of their deposits and their financial strength.

Deposits with Irish banks and their subsidiaries (including the offshore branches) are 100% guaranteed by the Irish Government at the moment, under the Eligible Liabilities Guarantee (ELG) scheme.

Transferring money to Ireland

Are you looking to invest in Ireland? If so, think carefully about how you will be transferring money to Ireland. Foreign currency exchange rates quoted by banks are almost always worse than the exchange rates available through specialist currency dealers.

So if you are sending money to Ireland – which you will inevitably have to do if you are looking to make a property investment, be sure to compare the market before you buy your overseas currency.