Ireland may keep open part of Anglo Irish Bank
By Andras Gergely |
September 7, 2010, Tuesday
|
Print Edition
Print Edition
KEEPING a part of Anglo Irish Bank open for business remains an option, the Ireland's finance ministry said yesterday, denying media reports that it has already decided to ask Brussels to wind it down gradually.
Earlier yesterday, the Irish Independent newspaper reported Finance Minister Brian Lenihan would ask the European Commission to allow a closure of the nationalized lender over a 10-year period.
Science and Technology Minister Conor Lenihan said on Saturday the bank would be "decommissioned," the latest signal from the government that it is about to bow to growing political pressure to shut down the lender.
"There are two options, a wind-down done over a period of time or a good bank/bad bank scenario put forward by Anglo," a spokesman for the ministry said, adding that Brussels was expected to give its verdict at the end of the month.
"It will only be at that stage that we'll know which of the options has been chosen," the spokesman said.
The escalating cost of rescuing Anglo Irish is a major threat to Ireland's creditworthiness, with analysts seeing it as the next potential eurozone trouble spot after Greece despite much-vaunted efforts to cut other public spending.
At around 352 basis points, the premium investors demand to hold 10-year Irish debt rather than benchmark German Bunds, it remains only about 20 bps below last week's record highs, showing investors are still nervous over the Irish economy.
Earlier yesterday, the Irish Independent newspaper reported Finance Minister Brian Lenihan would ask the European Commission to allow a closure of the nationalized lender over a 10-year period.
Science and Technology Minister Conor Lenihan said on Saturday the bank would be "decommissioned," the latest signal from the government that it is about to bow to growing political pressure to shut down the lender.
"There are two options, a wind-down done over a period of time or a good bank/bad bank scenario put forward by Anglo," a spokesman for the ministry said, adding that Brussels was expected to give its verdict at the end of the month.
"It will only be at that stage that we'll know which of the options has been chosen," the spokesman said.
The escalating cost of rescuing Anglo Irish is a major threat to Ireland's creditworthiness, with analysts seeing it as the next potential eurozone trouble spot after Greece despite much-vaunted efforts to cut other public spending.
At around 352 basis points, the premium investors demand to hold 10-year Irish debt rather than benchmark German Bunds, it remains only about 20 bps below last week's record highs, showing investors are still nervous over the Irish economy.
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