Feb. 17 (Bloomberg) -- Irish government guaranteed lenders’ reliance on European and domestic central bank funding fell 22 percent last year to 109.5 billion euros in December, according to the country’s finance ministry.
The year-end figure comprised 67.1 billion euros of ECB funding and 42.4 billion euros of so-called extraordinary liquidity assistance from the Irish central bank, the ministry said in a presentation posted on its website today.
The decline was helped by banks selling and running down 40 billion euros of assets, 19.6 billion euros of state capital injections and lenders selling 6.9 billion euros of secured bonds in private deals, according to the ministry.
While the country’s banks have 13 billion euros of debt maturing this year, they are forecast to deleverage 23.3 billion euros of assets in 2012, the ministry said. The banks “are unlikely to issue senior bank debt at higher yields,” the ministry said.
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