Guardian: Irish Government Faces Growing Fears of National Debt Default

Fears are growing that Ireland could default on its national debt after the

cost to insure against possible losses on loans to the country rose to

record highs at the end of last week. Credit ratings agency Moody's

recently followed rival Standard & Poor's in warning it might downgrade

Irish debt, amid fears that one of Europe's former success stories is falling

into a deepening recession. The cost to hedge against losses on Irish debt

tripled last week to a record 355 basis points - meaning t for every £100 of

debt, investors have to pay £3.55 to insure against default, according to

data firm CMA Datavision. It was about 262 basis points at the end of

January. Moody's has warned there is a more than fifty percent chance

Ireland will lose its triple A rating within 12 to 18 months . . .