Sunday, June 10, 2012

Spain on the edge of a financial abyss while borrowing costs soared

Spain is on the edge of a financial abyss, as EU sources claim it could ask for a bailout as early as this evening. Madrid's credit score has been slashed, while it's borrowing costs soared close to the level that forced Greece, Portugal and Ireland to seek rescue. But as Eurozone powerhouses try to keep the single currency afloat, one Irish town is banking on the past, to turn a profit.

 The town of Clones – just 88km away from Belfast – had been severely affected by the nation’s economic downturn; and decided to resurrect the former currency after discovering a financial loophole in the Irish legal system, which said that any punts stuffed under mattresses, inside piggy banks, kept as souvenirs in shoeboxes, or accumulated in latent bank accounts, can still be considered as legal currency.

 “We checked with the central bank in Dublin and we were staggered to find there was around 285 million punts that could still be exchanged as legal currency,” said Ciaran Morgan, a 21-year-old university student who, along with his father, had thought up the idea of reviving the punt. “I was absolutely bowled over by the amount of punts still out there in the country so hopefully if we got 1 percent of that 285 million it would be great,” added the president of Clones’ Chamber of Commerce Finbarr Dunwoody.

 Ireland has an area of 84,421 square km and is the third biggest island in Europe. Situated in North Western Europe, Ireland is surrounded by a multitude of islands. Its most prominent neighbour is Great Britain. The population of Ireland is estimated to be around 6.2 million.

 See more at ECONOMY WATCH