London: The cost of insuring against US and British debt defaults may rise in the same way as it has for so-called European peripheral nations including Greece and Portugal, Deutsche Bank AG said.

WORLD markets estimate there is a one in four chance Ireland will go bankrupt over the next five years, pushing the cost of insuring government debt of e51.16 billion to e1.66bn a year.

PRESSURE on the Government to reach a deal on €2 billion of public spending cuts increased last night after being warned Ireland was in danger of losing its prized AAA debt rating.