Standard & Poor’s has stripped the Netherlands of its triple-A credit rating, saying that the country’s growth prospects have deteriorated and it is not performing as well as peers.

A decision on what type of precautionary credit line could be extended to Ireland will be made before the country exits the bailout programme in November, the president of the ECB, Mario Draghi, said at its monthly meeting.

The IMF has urged that Irish banks receive direct recapitalisation from the European Stability Mechanism, which puts it on a collision course with the Eurogroup of finance ministers and the eurozone creditor nations.

Personnel from Blackrock International are in the Central Bank preparing the groundwork for the next round of stress tests on Irish banks, which will be held this year, the Irish Examiner has learned.

The eurozone’s handling of Cyprus’s bailout puts extra pressure on its downgrade- threatened sovereign ratings and shows policymakers overestimate their ability to contain the crisis, credit agency Moody’s said.

Cyprus secured a €10bn package of rescue loans in tense negotiations early today, saving the country from a banking system collapse and bankruptcy.

ECB policymaker Joerg Asmussen has said Greece will probably need a follow- up programme for the years following 2014 after the eurozone, this week agrees on the country’s funding for the next couple of years.

A deal will be done for Ireland on bank debt and a decision will be made on this before Christmas, says a Luxembourg-based source close to the Eurogroup of finance ministers.

It is uncertain whether the will exists to take the steps needed to save the currency, says John Walsh

THE continuing decline in Irish and European manufacturing has led for fresh demands on the European Central Bank to cut interest rates further.