London, United Kingdom (PressExposure) November 22, 2010 -- “Guardian-inter analysts are adamant that the near €100 billion loan that Ireland has sought from the European Financial Stability Fund (EFSF) has more or less been forced on the country in order to help stabilize the euro.

Investor concerns had been mounting on Ireland’s reluctance to seek funding from the joint EU/IMF fund since it had no need to borrow money from the international debt markets until June 2011. Markets feared that the uncertainty surrounding the country once referred to as a “Celtic Tiger” would irreparably damage the single currency.

One “Guardian-inter” analyst said that the deal was likely to be concluded within weeks but hinted that the firm felt the loan was counter-productive. “It’s simply piling more debt on top of already crippling debt obligations; the government is going to find it difficult to impose yet more austerity measures and raise further taxes”.

The announcement came after seven days of intense negotiation and amid repeated claims from Irish officials that the funding was unnecessary.

“Guardian-inter” believes that speculators are likely to focus on the situation facing Portugal and Spain sooner rather than later. “It really is a case of when, not if. Perhaps they’ll have another look at the US dollar or sterling first but eventually, they’ll return to the euro zone.

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