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Central bank governor says new ECB medium-term liquidity facility for Irish banks not expected soon
By Finfacts Team
Apr 11, 2011 - 4:20 PM
The governor of the Irish Central Bank has said
in an interview that a new European Central Bank (ECB) medium-term liquidity
facility to assist Ireland's embattled banks is not expected "for the
Prof. Patrick Honohan said in an interview with Market News International, that
it was too soon to say when the Ireland would return to markets for funding. The
country is currently dependent on the EU-IMF bailout mechanism.
Both the ECB and the Central Bank have advanced short-term liquidity of about €170bn to Irish banks - - greater than the value of the annual GDP or national output.
"I read in the newspapers many stories about this thing and for sure there
are many ideas about ways of dealing with the situation. I am not really
anticipating any major action on this front (liquidity facility) for the
moment," Honohan told MNI.
He also said that solving bank problems was the Government's task more than that
of the ECB.
Also today the nationalised Anglo Irish Bank,
which is being would down, is reported to have submitted plans to the National
Treasury Management Agency (NTMA) detailing a rationalisation of the bank.
The proposals also include provisions to integrate Irish Nationwide Building
Society into Anglo as well as previously announced job losses.
Both Anglo Irish Bank and Irish Nationwide have a staff of 1,300 - - a large
number for an Irish company and even more so for an institution that is not open
for new business.
The restructuring plan for the merged bank is expected to provide for 300 job
Advisors Hawkpoint have been appointed to handle
the sale of the company's wealth management business.
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