Central Bank Welcomes Agreement
The Central Bank of Ireland today (Sunday 28 November) welcomed the agreement of the Programme for Support negotiated by the Irish Government with the European Commission, European Central Bank and the IMF.
Governor Patrick Honohan said:
The support of the European Commission, European Central Bank and the IMF underpins a clear economic and financial policy path for Ireland. The first steps on this path have already been taken. The backstop funding now available means that those policies both fiscal and banking can be fully implemented and that market confidence returns. The international authorities have demonstrated their confidence that Ireland can bring its debt dynamics under control. The programme also endorses the current policy approach to banking. It provides the necessary assurance to achieve a convincing and rapid reconfiguration and downsizing of the banks, putting the Irish banking system on a convincingly secure footing. The Central Bank will continue to provide all necessary support to the system.
Head of Financial Regulation, Matthew Elderfield, said:
The measures announced today provide an immediate and significant strengthening of the capital position of the Irish banking sector and mean that considerable contingent capital facilities are also in place as a further backstop for the banks. Similarly, the programme of deleveraging that is being accelerated will ensure the banking system is smaller and fitter, with better compliance with international liquidity standards. These actions will result in a stronger and more stable banking system for the benefit of depositors and investors.