Republic of Ireland: Bad bank bail-out
The Irish Government will shortly pay in the region of €50bn (£44bn) to its banks for loan books that were previously valued at €77bn (£67bn). The loans are largely classed as land and development loans, with around €19bn (£17bn) of them secured against UK property. This is being presented to Irish taxpayers as an absolute necessity to sustain a vibrant, independent banking sector. It will facilitate a recapitalisation of the banks' balance sheets and should, in theory at least, enable them to start lending again for the benefit of the wider Irish economy.
At the height of the economic crisis, the Irish Government created the NAMA to lend state-guaranteed bonds to banks. Shane Fahy examines how this intervention came about and what it will mean for the next generation of taxpayers
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