* Irish PM Cowen denies reports he said Ireland may need to call on IMF
* Euro still weak after initial fall
* Ireland says debt low, taking action on deficit
* IMF says no reason to think IMF financing needed
(Adds more Cowen, RTE comments, IMF, forecasts)
By Andras Gergely and Yoko Nishikawa
DUBLIN/TOKYO, Jan 14 (Reuters) - Ireland's Prime Minister Brian Cowen denied reports he might call on the International Monetary Fund (IMF) for economic help, but the euro remained weak after taking a hit from the earlier story.
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 has fallen more than 1-1/2 cents against the dollar since Irish public broadcaster RTE reported on Wednesday morning that Cowen had said Ireland may need IMF help if its economic prospects continue to deteriorate. It was last trading at $1.3171.
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.
The furore over what it called "inaccurate reports" led Ireland's finance ministry to issue a statement stressing its net debt position was relatively low by global comparison.
The ministry also reiterated it was determined to cut the country's budget deficit to ensure the stability and sustainability of public finances.
"In assessing Ireland's ability to address the challenges ahead it is important to note that Ireland's net debt position of 20 percent of GDP at end 2008 is relatively low," a spokesman said in a statement.
The former "Celtic Tiger" has suffered a stunning reversal of fortune as a domestic property crash and global slump plunged it into recession, forcing the state to bail out the three largest banks and borrow heavily to fund spending.
Ratings agency Standard & Poor's warned on Friday it may cut Ireland's AAA sovereign debt rating due to worsening public finances
NOT IN NEED
Economists expect Ireland's recession to deepen this year, and this month the government raised its budget deficit forecast for 2009 to 9.5 percent of GDP, more than triple the EU limit, adding that it was only expected to fall below the 3 percent limit in 2013.
However, an IMF spokesman said there was no reason to think that Ireland would require IMF help.
"The authorities have been clear today. We agree. There is no reason to think that IMF financing will be needed," the spokesman William Murray said.
Analysts agreed. "There is no indication that there is a lack of appetite from investors to buy Irish government bonds," said Oliver Mangan, Chief Bond Economist at AIB Global Treasury.
"Contrast that with the 1980s when we had a debt to GDP ratio of 120 percent here, with frequent currency devaluations ... The situation was far, far, far worse then, and we managed to get out of it, (there is) no comparison."
Even so, Irish 10-year government bonds underperformed benchmark German Bunds on Wednesday, sending the yield spread to a fresh historic wide.
(Writing by Paul Hoskins and Jodie Ginsberg; Editing by Ruth Pitchford)