CITYWIRE - EU to force Irish banks to accelerate asset sell-off

robut

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EU to force Irish banks to accelerate asset sell-off - Citywire

"Irish banks will be forced to decrease their balance sheets more quickly than planned in order to gain access to European funding, according to the Financial Times.

As part of the European Unions and International Monetary Fund' s planned €85 billion bailout of the country, banks will be forced to sell tens of billion of euros worth of legacy loans in just a matter of months, a source told the newspaper.

'The deleveraging has to go fast. That was part of the deal to keep European Central Bank fuding,' said the source.

Bank of Ireland and Allied Irish Banks are expected to be hardest hit by the forced assets sale as they have a combined loan book of about €200 billion.

The New York Times has said that EU finance ministers are under pressure to reduce the EU's €750 billion rescue fund in a meeting today."

========================================================

The line "banks will be forced to sell tens of billion of euros worth
of legacy loans in just a matter of months
" could be disturbing?

Does this mean they will be packaging off private mortgages, business
loans and so on to other non Irish banks where the potential is for
higher interest rates?
Robut
 
Last edited:


robut

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domain-b.com : Ireland to accelerate shrinking of banks: report

"The nation's two leading banks, Bank of Ireland and Allied Irish Banks combined have about €200 billion in their loan books, would be most affected."

PAGE 2:
"Citing analysts, the paper said that Bank of Ireland would have to sell €20 billion of loans, while Allied Irish Banks have to dispose of €15 billion. "

Robut
 

robut

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And this:

Bank of Ireland soars as Flowers eyes Irish assets - Irish, Business - Independent.ie

"Bank of Ireland soared in Dublin trading as J. Christopher Flowers, founder of New York private-equity firm J.C. Flowers & Co, signaled he is continuing to look for Irish banking assets.

Bank of Ireland rose as much as 7.5pc to €34.50 and was up 5.9pc as of 9:09am. Allied Irish Banks was unchanged at €34.30.

Flowers said in a Bloomberg News interview on December 3 that “if we can find the right opportunity to invest in Ireland, we would like to do that.” J.C. Flowers had been bidding for Irish lender EBS Building Society, two people with knowledge of the talks said on September 8.

A stake in AIB or Bank of Ireland, the country’s biggest lenders, may be attractive depending on government guarantees on potential losses from toxic assets, Flowers said in a Financial Times interview today."

Robut
 


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