![]() This assessment of the bank’s plan has now been concluded, and the national position has been communicated to the European Commission. At the time the plan was submitted the Minister asked the various responsible State agencies – the NTMA, the Financial Regulator and the Central Bank, as well as his own Department, to assess the plan and provide their views to the Commission. It is important to be clear from the outset that the Government did not endorse the plan submitted by the bank to the EU Commission at the end of May. The Government is satisfied that proposed approach meets these objectives and represents the best way forward. The approach adapted today represents the culmination of work and analysis of problems at Anglo and the development of a sustainable solution which removes uncertainty from the situation. The Government’s objective has always been to find the least cost solution to the difficulties at Anglo Irish Bank and to protect the interests of the Irish taxpayer and the country generally. ![]() The decision today does not represent a change in policy. Why is the Government adopting this new policy The Funding bank will have a narrow focus as specialist deposit / savings bank Both entities will remain regulated licensed entities. Subject to EU approval and other regulatory consents Anglo Irish Bank will be split into two distinct entities.Īs set out in the Minister’s Statement the Asset Recovery bank will be mandated to manage the remaining non NAMA loan book to maxise the return to the taxpayer. The Government has decided to adopt a variation of the bank’s split plan as the preferred option to the restructuring of Anglo Irish Bank. Does this proposal represent a Wind up of the bank? * Minister is holding a briefing at the moment so maybe further clarity post that.įollowing Q&A sheet provided by DOF (although some lack of clarity here) The Fuhnding Bank therefore will not be a draw on the exchequer. * Both banks maintain licenses which allow them to fund in wholesale markets, hold bonds, promissory notes ,etc. * Still very unclear as to how much capital the government will have to put into these entities. ![]() These loans will be funded by all bond holders as well as loans form the Funding Bank. All existing (post NAMA) loans will move to the Asset Recovery bank which will be wound down/ sold over time.Ģ. NAMA bonds will sit on the asset side of the Funding Bankġ. The Funding bank will provide funding to the Asset Recovery Bank which will pay a market rateģ. The Funding bank will only hold Deposits – all other liabilities will move to the Asset recovery bank.Ģ. Some clarification from the Dept of Finance and Angloġ.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |