Abstract

The main prerequisites are focused for the emergence of credit, construction and property boom, resulting in tremendous losses for the banking sector (saved with taxpayers' money) and in the necessity Ireland to be rescued from the sovereign bankruptcy by means of an international loan of EUR 85 billion. The too low interest rates after 1999 (when the country entered the Eurozone) and the low criteria for bank crediting are identified as key factors for the property boom. More stringent global regulations (especially in the banking sector) are required in the future in order to avoid the destructive recessionary effects of the credit and housing bubbles.