Irish Economy
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

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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 moment."

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 losses.

Advisors Hawkpoint have been appointed to handle the sale of the company's wealth management business.

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