Ireland may face ‘disastrous’ sovereign debt crisis

IRELAND may be plunged into a “disastrous” sovereign debt crisis within three years as the cost of rescuing its banks mounts, Nouriel Roubini, who predicted the global financial crisis, said.

The Government has injected €46 billion to bail out the country’s debt-laden financial system, after a decade-long real estate bubble collapsed in 2008.

The banks need another €24bn in capital, and the state has pledged to provide whatever they can’t raise alone.