IMF Officials Say Ireland Will Not Trigger Euro Zone Debt Crisis

　　 International Monetary Fund (IMF) Jose Vinals, head of monetary capital market, said on Friday, Jose, Jose Ireland The issue will not trigger another eurozone sovereign debt crisis, saying that he believes there is no reason for the Irish government to apply for the special assistance system established in May.

　　 José Vials "The Irish authorities are taking all the necessary measures," he said at a banking conference held in Chicago today. Ireland has a very strong fiscal strategy, and I do believe that the country is dealing with the problems it faces. "

Earlier this year, the price of credit default swap used to protect Ireland's sovereign debt went up to its highest level, leading to a sharp rise in the price of credit default swap in the euro area as a result of the fear that the Anglo Irish Bank Corp (AGCPF) would not make full payments to creditors. Investors are reluctant to buy Irish bonds because of fears that the cost of rescue in the banking sector and the downturn in the economy will hurt the Irish government's deficit reduction measures.

Credit default swap (CDS) is a financial derivative product derived from credit card loan. It can be regarded as a kind of breach insurance for financial assets. Creditors can sell the debt risk through this contract, and the contract price is the premium. The party who purchases the credit default insurance is called the buyer, and the party who takes the risk is called the seller. The parties agree that if there is no default on the financial assets, the buyer pays the insurance premium to the seller periodically, and if the breach occurs, the seller will bear the loss of the buyer's assets.

Vinals's view is in line with today's remarks by Caroline Atkinson, head of the external relations department of the International Monetary Fund (Caroline) Atkinson. Vinals declined to comment on the IMF's next report on global financial stability, which is scheduled to be released next week. In addition, he declined to comment on whether the global companies had counted enough losses or write downs.

Vinals said earlier this year, the "stress test" for the eurozone banking industry was "very important", which provided the market with "no transparency". He said that disclosure of sovereign debt held by banks in the eurozone is a "big step forward" and that its operation is performing well.

The government guarantees for some subordinated debts sold by Irish banks will expire next week. Patrick Honohan, the governor of the Irish central bank, said in June that he did not know whether the junior creditors of Anglo Irish Bank would be "integrated as a whole". Patrick,