Introduction Before getting into the discussion about the subprime crisis in the Irish economy its better to have an idea that what Subprime Crisis actually is? Answers.com.yahoo has explained this crisis leads to an instant increase in the mortgage loans default rates, especially sub prime mortgage borrowers. Sub prime borrowers are the borrowers who do not qualify for normal rates, but are offered alternative loans, usually with a higher interest rate, thus expecting a higher default rate. With the beginning of this year 21percent of all subprime loans are delinquent by 90 days or more. It means that 1 in 5 of these borrowers cannot afford the repayments. These loans depict that about 7 percent of the housing loan market currently formulate 40percennt of all foreclosures. As estimated that only the defaults of subprime loans will cost the US economy $200 billion to 300 billion. The current financial markets turmoil is a result. (Answers.com.Yahoo.) Beginning with the US economy this crisis is now extended to the European economy also. As mentioned in “Subprime crisis impacts European, US growth”, the Managing Director of International Monetary Fund Managing Director Mr. Dominique Strauss-Kahn is of the opinion that global financial stability is blown from the subprime crisis and as a result the European and US growth is getting weaker. He thinks that there are significant measurable effects at IMF. The weaker growth of course. Surely not catastrophic but will continue to exist. The Central Banks coordinated efforts are praised by IMF in order to address the credit crunch and to keep the monetary policy flexible. (Subprime crisis impacts European, US growth updated Dec 22, 2007). In this paper we are going to analyze he implications of the “Subprime Crisis” only in context with the Irish economy. Let’s have an overview of Irish economy. An Overview of Irish Economy As discussed in Ireland and the European Union page in www.usna.edu.The economy of Ireland is based on agriculture. It has long been an integral part of its history and its political situation. The Irish economy comprises two economies, “the Republic” and “Northern Ireland”. At present the economies can be treated separately, whereas, both economies are members of the European Union. The Republic of Ireland is one of the fifteen nations in the European Union and Northern Ireland is a part of the United Kingdom. Moreover, the possibility remains that Northern Ireland and the Republic can again unite, taking it necessary to treat both economies in the context of Ireland and the European Union. As an organization without the regional economic integration of the actual European Community, the European Union serves both the Republic and Northern Ireland as the members. (Ireland and European Union) An Economic Analysis by Pricewaterhouse Coopers portrays Ireland economy developing by an estimated 5.9percent in 2006 and a projected 5.1percent in 2007. In both the years Ireland is on the top of the Euro land growth table. The speed of growth of Euro land economy is estimated at 2.7percent in 2006 and a bit slower 2.1percent in 2007. (Pricewaterhousecoopers Economic Analysis.) Ireland and Risk of Financial Crisis Finfacts Ireland-A business and Fi