When Ireland decided that the debts of the bondholders and investors should be transferred to the citizens (the tax payers) they made the worst mistake ever and aggravated the European debt crisis situation. The action made their economy to collapse and between the year 2006 and 2010, their rate of unemployment had risen from 4 % to 14 %. Their budget which had a surplus in 2007 dropped to a 32 % deficit of the total gross domestic product in 2010. This was the worst fall and the highest deficit in all of the Eurozone’s history and this happened while major austerity measures were in place. The issue about the hidden loans in the Irish banks saw the resignation of three major executives. Chief executive Sean Fitzpatrick also resigned. Ten businessmen are currently under investigation about shares bought in the Anglo Irish bank using loans gotten from the bank in the year 2008. A considerable increase in two year bond yields in 2010 prompted the NTMA to issue a statement that said they had no major refinancing to do. They required twenty billion in euros in 2010 and they had a comfortable 23 billion euros in cash balance. In September 2010, then Irish banks failed to raise finance and its guaranteed was again renewed making it the third year of renewal. An immediate negative impact was felt in Irish bonds. Help for the banks sky rocketed to 32 % of the total GDP and the state was forced to start negotiating with the European Union, three other nations (Denmark, the United Kingdom and Sweden) and the international monetary fund. The result of this intervention was a 67.5 billion euros bailout package for Ireland on the 29th of November 2010. Ireland also churned in an extra 17.5 billion euros from pensions and own reserves boosting the package to %u20AC85 billion. Out of this sum, 34 billion euros was supposed to be used for the country’s financial sector which was practically on its knees. The government promised to reduce the country’s budget deficit to less than 3 % by the year 2015. In spite of all this the country’s debt was still graded down to a junk status. The leaders in the Eurozone decided in the month of July 2011 to reduce the interest rate on Ireland’s loan from 6% to a range of 3.5 to 4 percent and also to increase the time of repaying the loan to 15 years. This move will see Ireland being able to save up to %u20AC700 million per year and hopefully lift off a bit of the impact left by the European debt crisis.