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Anglo Irish Bank, along with most of the Irish banking sector, collapsed after the 2008 financial crisis |
The
Republic of Ireland's central bank governor, Patrick Honohan, will discuss a
plan with the European Central Bank (ECB) on Wednesday evening, according to
the Reuters news agency.
Liquidation
may mean that Dublin can delay the repayment of debts associated with the
bank's bailout by many years.
An update
is expected to be provided to the Irish parliament late on Wednesday.
IBRC chairman
Alan Dukes was quoted by Reuters as saying the board had been liquidated
earlier in the afternoon, and that the accountants KPMG were now running the
bank.
If the
Irish Republic gets ECB approval for the liquidation, IBRC's loans would be
transferred to the National Asset Management Agency (Nama), the Irish "bad
bank" responsible for recovering the value of problematic loans made by
other Irish banks.
A so-called
promissory note, under which Dublin must pay 3.1bn euros (£2.7bn; $4.2bn) a
year until 2023, would be turned into sovereign bonds that may not have to be
fully repaid for up to 40 years.
Toxic loan
book
The result
would be that Dublin postpones repayment of a huge debt burden. The government
had previously wanted to reschedule the debt repayment, but this was blocked by
the ECB after 18 months of negotiations.
The ECB was
reluctant to be seen to be providing debt relief to a national government.
The IBRC
has been winding down the old toxic loan book of Anglo Irish for more than two
years.
The Irish
government issued the total 31bn-euro promissory note in order to cover most of
the 34bn-euro cost of rescuing Anglo Irish.
The bank
was among the most prolific of lenders to property speculators and developers
during the Irish Republic's housing bubble in the last decade.
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Channel: Wanderer of the Skies - April 14, 2012
“… Your nation of Iceland is being used as a testing ground for the rolling out of financial strategies for the betterment of your planet. It would be wise to follow their progress in this respect, as it will be the fate of all nations in a very brief period of time. We have always advised you that such an action would never come from the larger powers and nations of the world, but they will follow in lockstep once the actions begin their domino effect…..”
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