20.09.201008:40:00UTC+00Government needs to rethink budget plan: Irish Cbank

News

• Cbank said that Ireland will need to rethink its plan for cutting a bloated budget deficit after disappointments on economic growth.
• Analysts expects this year's budget deficit to reach around 25 pct of GDP.
• Cbank Governor Patrick Honohan said the deficit could come close to the target by 2014 if the economy stays on the originally envisaged course.
• The budget and a increasingly costly bailout of its banks have concerns for investors worrying that another euro zone state may wind up in similar trouble to debt-laden Greece. 
• Ireland's 10-year bond yield was around 6.5 pct driving the yield premium investors demand over German bunds to a fresh euro lifetime high of 412 bps.
• Despite his budget warnings, Honohan also said some of the estimates for the scale of the bank bailout cost were overdone.