Tuesday, August 31, 2010
Pressure to Close Anglo Irish Bank
Source: Press TV
The Irish government signaled on Monday that gradually winding down Anglo Irish Bank could be an option as political pressure mounts on Prime Minister Brian Cowen to deal with a national millstone.
Propping up Anglo Irish left Ireland with the biggest budget deficit in the European Union last year.
With the costs continuing to climb and no final bill in sight, the premium investors demand to hold 10-year Irish bonds rather than Bunds neared record highs again on Monday.
"What we are not saying is that there can be an immediate shutdown of Anglo, that is still by far the most expensive option," Green Party Chairman Boyle told public radio RTE.
Anglo Irish is moving half its loan book to Ireland's state "bad bank" scheme, the National Asset Management Agency (NAMA).
"Management in Anglo Irish is both trying to cooperate with NAMA and promote this idea of a good bank which I think is dividing their attentions," Boyle said.
Ireland should collaborate with the European Commission and the European Central Bank to make sure a wind-down of Anglo would not endanger other Irish banks and the ability of Ireland itself to borrow.