Speaking in Luxembourg this lunch time on the fringes of an EU finance ministers’ meeting, the German finance minister said that retroactive direct recapitalisation for Ireland was “not probable”. “Ireland did what Ireland had to do… now everything is fine,” Mr Schauble said. His comments underline the growing sense in German circles that Ireland’s strong performance under the bailout has lessened its case for further debt relief on its €64 billion bank bailout.
Completing its tenth review of Ireland’s bailout programme, which also saw it release the final €950m of its loans, the IMF said there needed to be resolution on the 25% of loans that are currently non-performing.
The IMF said it was vital that this was achieved before the country enters the European banking union, and ahead of European stress tests due to take place next year.
Asked whether Minister for Finance Michael Noonan (above) had any comment on whether banks should pass on the rate cut to standard variable rate customers, his spokesman indicated he would not be intervening.
“This is purely a commercial matter for the banks,” the spokesman said.
The Irish Government welcomed the agreement, describing it as a “positive development for Cyprus, the euro zone as a whole, and Ireland ”.
“The Cypriot case is a complex and difficult case and it was a significant achievement to reach an agreement between all parties,” a Department of Finance spokesman said yesterday. “This agreement provides a sustainable solution, which deals with Cyprus’s financial system and its funding requirements.”
Minister for Justice Alan Shatter has warned banks that if they do not co-operate with the new personal insolvency scheme he would bring in new legislation to ensure their compliance. The Personal Insolvency Bill, a fundamental reform of the State’s antiquated bankruptcy laws, passed all stages in the Oireachtas last night and will be enacted before the end of the year.
He described the legislation as the “most radical reform since the foundation of the State”.
The new arrangements offer three separate court-backed mechanisms designed to help individuals with unmanageable debt – including mortgage debt – pay off a portion of their debt over a period of years, by means of an arrangement brokered by a licensed specialist known as a personal insolvency practitioner. It also provides for a new bankruptcy period of three years, rather than 12.
Among other things, it means Sean Quinn’s bankruptcy could end in 2015, rather than 2024.
Did you know on on October 15 more than 100 cases were filed in the High Court suing various mortgage providers?
We believe the bankers have broken the law by their practices, resulting in widespread ruin in Ireland as businesses close, mortgagors default, families are evicted from their homes, our young people are forced to emigrate and, tragically, many people turn to suicide.This situation has been caused by the banks, and we will take them to task through the courts to put right their wrongs.
IRISH BANKS reject more business loan applications than any other state in the euro zone except Greece, with small and medium businesses in Ireland twice as likely to have a loan application turned down as the average across the bloc.
The new figures are contained in a study published this morning by the Central Bank of Ireland.
While some teetering businesses which seek credit have little chance of repaying loans – and thus have to be refused them – the new study says that “high rejection rates in Ireland cannot be explained by the quality of the pool of potential borrowers”.
More than one in four businesses seeking a loan or an overdraft were rejected in the six months to March.
“Spanish policy makers are considering forcing investors who hold equity and junior debt in banks to absorb losses in a restructuring, according to a person with knowledge of the plan. Such burden sharing is among conditions being negotiated with the European Union in a 100 billion-euro ($126 billion) rescue for Spain’s financial industry.”