Ireland's government is seeking European support to stabilize tottering Anglo Irish Bank, hoping to end a recurring banking nightmare that has sparked fresh fears about its national finances, The Wall Street Journal reported. Struggling with the euro zone's biggest budget deficit relative to its gross domestic product at more than 14% last year, Irish authorities are also grappling with the ballooning cost of bailing out the banks, especially state-owned Anglo Irish—a bill that has already hit €33 billion ($42.55 billion), or roughly 20% of Ireland's GDP.

Any day now NAMA will appoint a formidable line-up of what it calls enforcement professionals, or liquidators and receivers to you and me. This panel, to be recruited in Ireland and the UK, will be on the front line in the expected confrontation between NAMA and Ireland's heavily indebted and usually insolvent developer class, The Independent reported in a commentary. The planned appointment of these insolvency firms is already inducing mild panic in the companies and individuals they will be grappling with.

The number of unemployment benefit claimants rose by 2,500 in August on a seasonally adjusted basis, The Irish Times reported. Some 455,000 people are now in receipt of benefits according to the Central Statistics Office. This the largest number ever recorded since the Live Register of claimants was first compiled in 1967. The standardised unemployment rate, which is calculated separately, rose to 13.8 per cent last month, up from 13.7 per cent in July. It was 13.1 per cent at the start of the year. The rate of joblessness in August was the highest since mid-1994.

Anglo Irish Bank made an €8.2 billion loss for the first six months of the year after writing off €5.8 billion on loans sold or heading for Nama and €2.5 billion on loans remaining at the bank. Provisions and impairments totalling €8.3 billion were offset by an operating profit of €151 million, which left the bank with an €8.2 billion loss for the six-month period. The loss surpassed the previous record set by Anglo last year for the highest loss for a six-month period taken by an Irish company. The bank lost €4.1 billion for the corresponding period last year – the six months to March 2009.

Eircom warned that it could breach the covenants on its €3.8 billion net debt within the next 12 to 18 months as the company’s revenues continue to shrink in the recession, The Irish Times reported. It also wants a reduction in labour costs of €90 million over the next three years to make the business more competitive. This is all against a backdrop of declining sales across the group. Revenues fell by 8.5 per cent in the year to the end of June to just more than €1.8 billion. On a positive note, Eircom trimmed its operating costs by 11.5 per cent.

The High Court has appointed an interim examiner to regional airline Aer Arann. The move gives the company court protection to enable the examiner to implement a restructuring plan, RTÉ Business reported. Michael McAteer of Grant Thornton is to be interim examiner to Comhfhorbairt (Gaillimh), which trades as Aer Arann. A statement from the airline said Mr.McAteer's appointment would not affect day-to-day business and the company would continue to operate as normal. Aer Arann said there would be no impact on customer travel or bookings.

The Belfast Clinic, an upmarket private medical clinic in south Belfast, has been placed into administration, InsolvencyJournal.ie reported. The clinic, which opened just two years ago and was the newest independent private hospital in the North, offers a range of services, including cosmetic surgery, gynaecology and urology. It also boasts state-of-the-art facilities and has 15 private rooms in its premises on the fashionable Lisburn Road in Belfast. The firm experienced financial difficulties, however, following the suspension of the NHS waiting list initiative.

The High Court yesterday gave troubled builder McInerney Homes protection from its creditors in the first case of its kind to involve a business with debts destined for State bad bank, Nama, The Irish Times reported. McInerney has been wrestling with €236 million in debt owed to Irish and British banks since last year, but was close to selling a stake to US-based private equity house, Oaktree Capital, for €40 million, a deal that would have recapitalised the business.

Ireland’s long-term sovereign credit rating was cut one step to AA- from AA by Standard & Poor’s, which cited the projected cost of supporting the nation’s financial sector, Bloomberg reported. “The negative outlook reflects our view that a further downgrade is possible if the fiscal cost of supporting the banking sector rises further, or if other adverse economic developments weaken the government’s ability to meet its medium- term fiscal objectives,” S&P said today in a statement.

Reports have emerged that troubled house builder McInerney Holdings is preparing an application for court protection which would force its lenders to write down its debts. If the petition goes ahead, it could represent a challenge to Nama legislation, InsolvencyJournal.ie reported. Laden down with borrowings of €236 million, McInerney Holdings, one of the country's oldest house builders, is one of the many Irish firms attempting to restructure its debts in a last-gasp effort for survival.