Bloomberg News

Irish Banks Deleveraged 40.5 Billion Euros of Loans in 2011

February 14, 2012

Feb. 14 (Bloomberg) -- Ireland government said its state- guaranteed lenders sold and ran down 40 billion euros of loans last year, beating a 34.7 billion-euro target.

The nation’s two largest banks, Bank of Ireland Plc and Allied Irish Banks Plc, sold almost 15 billion euros of assets at “significantly better prices” than expected during stress tests in March, the government said in documents published on the Finance Ministry website today.

“Based on experience, we are working to refine our deleveraging framework, with more emphasis on the net stable funding ratio for the banks’ core balance sheets as we move towards adoption of the Basel III liquidity requirements,” it said. The new targets will be effective from June.

The government also said it will seek at least 3.5 billion euros of budget cuts 2013, and will take any corrective action needed “to meet changing circumstances.” The government’s plans to raise 1.25 billion euros of additional revenues will include a broadening of the personal tax base and an increase in indirect taxes.

To contact the reporter on this story: Joe Brennan in Dublin at jbrennan29@bloomberg.net

To contact the editor responsible for this story: Dara Doyle at ddoyle1@bloomberg.net


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