The reputation of the ugly American tourist is getting a revival in one seaside Irish village.» Read More
The question whether the single European currency will survive the current crisis is "silly", Otmar Issing, president of the Center for Financial Studies and a former ECB board member told CNBC.
Demand may be strong for bonds issued by periphery euro-zone countries but those countries must restructure their debt at some point because yields are unsustainably high, two economists told CNBC Wednesday.
Ireland's four- and eight-year sovereign bond auctions saw strong demand, pushing the euro higher versus the dollar.
Investors are anxiously waiting for Ireland's auction of longer-term government bonds later Tuesday to see whether demand for periphery euro-zone debt is still going strong despite fears that gripped markets Friday.
A planned auction for Irish government bonds is likely to go ahead despite jitters concerning the country's banks and debt that roiled markets Friday, analysts said Monday.
Vulture investor Wilbur Ross, along with private equity firm Carlyle and Dublin-based Cardinal Group, will buy troubled Irish bank Education Savings Bank, Ross told CNBC Wednesday.
"We are being punished because we have exposed our dirty linen on the banking front," Irish Finance Minister Brian Lenihan told CNBC in an interview. "We've made no secret of it."
Ireland on Tuesday extended its guarantee for short-term bank liabilities, including corporate and interbank deposits, as expected as the government sought to reassure investors. Irish bond spreads hit fresh peaks on Tuesday on renewed jitters about the health of the European banking sector exerting more pressure on Ireland.
It is a big week for Ireland following news that the European Commission wants Anglo Irish, the nationalized lender, wound down and with conflicting reports regarding the bank's future emerging.