Ireland pays £48bn to rescue five banks from toxic debts
Thursday 17 September 2009
Five High street banks in Ireland are to be paid £48bn by a state agency to cover their toxic debts in the biggest financial rescue in the country's history. Bonds issued by the National Assets Management Agency (Nama) will provide the struggling banks with £7bn more than the current £41bn value of their toxic debts.
Brian Lenihan, the Finance Minister, accepted that voters were furious with the banks, but said there was recognition that economic recovery would only come with a stable banking system.
"We must all now overcome our understandable anger and get on with the business of reform," he said, adding that a 10 per cent increase in property values over the next decade would be enough to ensure taxpayers got their money back. There was an angry response in the parliament, which was suspended several times during the debate, and protests outside.
The toxic debts are mostly owed by speculators who bought big during the Celtic Tiger boom years.
The banks to be rescued – Bank of Ireland, Allied Irish Bank, EBS building society, Irish Nationwide, and the now-nationalised Anglo-Irish Bank – were already brought under an emergency €400bn (£356bn) state guarantee last year as they faced collapse.
- 4 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
- 5 A bottle of wine a day is not bad for you and abstaining is worse than drinking, scientist claims
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Michelle Obama highlights harsh restrictions faced by Saudi women after meeting King Salman without wearing a headscarf
Amal Clooney gives excellent response to fashion question at European Court of Human Rights
Isis publicly behead man in Syrian town square for 'insulting Allah' as he screams for help
One spelling error costs Companies House up to £9 million after being sued for ruining business
9 reasons Greece's experiment with the radical left is doomed to failure
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
Greece elections: Syriza and EU on collision course after election win for left-wing party
British Muslim school children suffering a backlash of abuse following Paris attacks
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
£40000 - £70000 per annum: Recruitment Genius: This is an exciting opportunity...
£45000 per annum: Ashdown Group: A successful & reputable global business is l...
£35000 per annum: Recruitment Genius: This company is going through a period o...
Negotiable: Recruitment Genius: This award-winning digital publishing solution...