Greens want quicker wind-down of An­glo Ir­ish Bank

The Pak Banker - - Company+Boss News -

DUBLIN: The Green Party has changed its of­fi­cial pol­icy po­si­tion on An­glo Ir­ish Bank and will now seek a "quicker wind-down" of the State-owned bank.

The party's two Min­is­ters, John Gorm­ley and Ea­mon Ryan, are ex­pected to tell Govern­ment col­leagues at the Cabi­net meet­ing on Wed­nes­day that the Greens no longer sup­port ei­ther of the op­tions be­ing pro­posed for An­glo Ir­ish: a split into a good bank-bad bank; or the "or­derly" wind-down of the in­sti­tu­tion.

A party source con­firmed that the party has changed its stance and has adopted the po­si­tion out­lined by its fi­nance spokesman Sen­a­tor Dan Boyle in July that the bank be wound down in a shorter time than cur­rently en­vis­aged.

Mr Boyle has said that with the bank re­quir­ing €24 bil­lion in State fund­ing - and with no guar­an­tee that the bur­den to the tax­payer would not rise fur­ther - there needed to be clar­ity and a def­i­nite de­ci­sion on An­glo's fu­ture.

Asked last night about the tim­ing, he said it was not pos­si­ble to be spe­cific about the pe­riod, other than it would be shorter than the decade that is now en­vis­aged.

"Un­der cur­rent pol­icy, an or­derly wind-down would take 10 years. The Greens be­lieve it needs to be quicker than that. We are not say­ing, though, that it needs to be im­me­di­ate," he said.

The Greens' change of pol­icy comes as the bank pre­pares to re­port fur­ther sub­stan­tial losses to­mor­row - when An­glo pub­lishes ac­counts for the first half of the year - and the need for fur­ther cap­i­tal on top of the €14.3 bil­lion al­ready pledged to the bank.

An­glo had to take a write­down of €5.1 bil­lion on €9.25 bil­lion of loans, rep­re­sent­ing a dis­count of 55 per cent, sold in its first loan trans- fers to the Na­tional As­set Man­age­ment Agency (Nama) in May.

The bank took a fur­ther write­down of €4.2 bil­lion this month on €6.75 bil­lion of loans sold in the sec­ond tranche of loan trans­fers to the State agency, rep­re­sent­ing a higher dis­count of 62 per cent.

The lower value as­signed to Nama loans raised fears that the cost of An­glo could rise fur­ther.

While dis­miss­ing the re­cent es­ti­mate of rat­ings agency Stan­dard Poor's that the cost of An­glo could be €35 bil­lion - €10 bil­lion higher than the Govern­ment's cur­rent es­ti­mate - Mr Boyle ac­cepted that the fi­nal bur­den was un­clear.

"We are talk­ing about how long is a piece of string, or how deep is a hole? The Govern­ment pol­icy was never go­ing to be ope­nended," he said. Mr Boyle said the mat­ter was likely to be dis­cussed by Cabi­net on Wed­nes­day, as the bank was the "biggest draw on pub­lic re­sources".

This was con­firmed by a se­nior party source, who de­nied that the new po­si­tion rep­re­sented a re­verse in pol­icy on An­glo. "The party has never been doc­tri­naire in its ap­proach to this is­sue. The bot­tom line is that tax­pay­ers' money must be pro­tected. We now be­lieve their in­ter­est would be bet­ter served by a quicker wind-down," said the source. -PB News

IS­LAM­ABAD: Chan­cel­lor Pre­ston Uni­ver­sity Dr Ab­dul Ba­sit hand­ing over a cheque to Vice Chan­cel­lor Quaid-e-Azam Uni­ver­sity Dr Ma­soom Yas­in­zai in con­nec­tion to flood re­lief cam­paign by QAU Alumni As­so­ci­a­tion. -On­line

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