Bloomberg News

Irish Guaranteed Lenders’ Central Banks Funding Fell 22% in 2011

February 17, 2012

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.

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

To contact the editor responsible for this story: Finbarr Flynn at fflynn3@bloomberg.net


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