Ireland unveils bank rescue package / Anglo failure would ‘bring down’ Ireland

Author (Person) ,
Series Title
Series Details 30.9.10
Publication Date 30/09/2010
Content Type

Features reports that the Irish government announced on the 30 September 2010 that it would take a majority stake in Allied Irish bank, its second-largest bank, as part of a fresh multibillion-euro bail-out for the country’s lenders, forcing the government to redraft its 2011 budget plans.

The cost of bailing out the Republic of Ireland's stricken banks had risen to €45bn, opening a large hole in the Irish government's finances. The cost could result in a budget deficit of 32% of GDP in 2010.

Eurozone rules require that countries keep their budget deficit within 3% - something the government is maintaining it can still achieve by 2014.

Related Links
European Commission: Memo/10/465: Statement by Competition Commissioner Almunia on Irish banks http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/10/465&format=HTML&aged=0&language=EN&guiLanguage=en
The Guardian, 1.10.10: The Irish tragedy (via PressEurop) http://www.presseurop.eu/en/content/article/350771-irish-tragedy
European Commission: MEMO/10/465: Statement by Competition Commissioner Almunia on Irish banks http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/10/465&format=PDF&aged=0&language=EN&guiLanguage=en
BBC News, 1.10.10: Irish deficit balloons after new bank bail-out http://www.bbc.co.uk/news/business-11441473
Irish Times, 1.10.10: Opposition wants details of four-year budget plan http://www.irishtimes.com/news/opposition-wants-details-of-four-year-budget-plan-1.657648?mode=sample&auth-failed=1&pw-origin=http%3A%2F%2Fwww.irishtimes.com%2Fnews%2Fopposition-wants-details-of-four-year-budget-plan-1.657648
EUObserver, 30.9.10: Ireland reveals massive extent of banking debt http://euobserver.com/9/30934
Deutsche Welle, 30.9.10: Dublin bailout of Anglo-Irish to boost deficit to one-third of GDP http://www.dw-world.de/dw/article/0,,6059827,00.html
ESO: Background information: Dublin unveils plan to split Anglo Irish Bank http://www.europeansources.info/record/dublin-unveils-plan-to-split-anglo-irish-bank/
Ireland: Department of Finance: Press Release, 30.9.10: Minister's statement on banking 30 September 2010 http://www.finance.gov.ie/viewdoc.asp?DocID=6515&CatID=1&StartDate=1+January+2010&m=n
Website: National Asset Management Agency (NAMA) http://www.nama.ie/
Irish Times, 30.9.10: Final Anglo cost expected to be at least €29.3 billion http://www.irishtimes.com/newspaper/breaking/2010/0930/breaking4.html
Irish Times, 30.9.10: Lenihan warns of further cuts http://www.irishtimes.com/newspaper/breaking/2010/0930/breaking9.html

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