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Irish Green Party calls for elections | The Money Times

Money Matters - Simplified

Irish Green Party calls for elections

Dublin -- Ireland's future grew murkier Monday after a faction of the coalition government called for a general election early next year due to the financial crisis.

Ireland accepted international assistance Sunday and is negotiating details of a loan that could be $110 billion to $130 billion, The New York Times reported.

The loan was made necessary by sour loans that threaten the stability of the country's largest banks.

In a statement Monday, the Green Party, a significant portion of the coalition government, which is led by the Fianna Fail Party, called for "a general election in the second half of January 2011."

The election would be held after the details of international aid package and budget details were sorted out. Once that was done, the Green Party said it would break up the coalition that has a slim majority in the Irish Parliament.

Adding to Ireland's woes, credit rating agency Moody's Investors' Service said Monday the bailout would "crystallize more bank-contingent liabilities on the government balance sheet, and increase the Irish sovereign's debt burden."

Moody's gave Ireland's Aa2 rating a "negative outlook" label a month ago, the Times said.

Copyright 2010 United Press International

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