Irish PM denies report he may need to call in IMF

By Andras Gergely and Yoko Nishikawa

DUBLIN/TOKYO (Reuters) - Ireland's Prime Minister Brian Cowen on Wednesday denied he might call on the International Monetary Fund (IMF) for economic help, dismissing an earlier media report which weakened the euro.

The IMF said it had no reason to think its help would be needed in Ireland, one of 16 members of the euro currency bloc. It has already provided support for countries in the region including Iceland, Hungary and Latvia, which have their own national currencies.

The euro fell over 1-1/2 cents against the dollar after Irish public broadcaster RTE reported on Wednesday morning that Cowen had said Ireland may need IMF help if its economic prospects continue to deteriorate. The currency remained weak later in the day on deepening fears about the global economy.

RTE initially said on its Web site: "Brian Cowen has confirmed that the International Monetary Fund could be called in if the economy continues to worsen." A later RTE radio news bulletin said RTE's initial report had been incorrect.

The Irish Embassy in Japan, where Cowen is on a visit, Cowen's office in Ireland and Cowen himself all moved swiftly to deny the initial report, which was picked up by other media outlets.

"I have never said that," Cowen told Reuters in Tokyo when asked about the report.

"We are a member of the euro area and we have the best-performing economy in the last 10 years in the European Union," he said before attending a reception at a Tokyo hotel.

Defence Minister Willie O'Dea said it was "scaremongering."