Ireland can 'manage' on its own

IRELAND can manage on its own, the head of the International Monetary Fund said yesterday, a day after eurozone sources said the former "Celtic Tiger" was in talks about a possible EU rescue.

IMF managing director Dominique Strauss-Kahn, in Japan for the APEC summit, said Ireland had not asked for aid.

"So far, I have not had a request, and I think Ireland can manage well," he said.

Eurozone sources said on Friday that discussions on a possible aid package were under way, with one official saying it was "very likely" Ireland would get financial assistance from the EU facility set up after Greece was forced to seek help in May.

Dublin has repeatedly denied that it plans to tap EU funds. Strauss-Kahn said he too was unaware of talks about an EU bailout of Ireland.

He said the country's difficulties had been principally caused by one big bank and were very different from those of Greece, which faces deep-seated problems.