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EU pressed to step in over Irish pledge
Evening Standard 1 Oct 2008
Pressure is mounting on the European Union to intervene in the Irish Government's decision to gurantee all €400 billion (£317 billion) of savings and deposits held in six Irish banks and building societies.
Intense lobbying of the regulators in both Brussel and Dublin came as it emerged that one, if not two, Irish banks were in danger of collapsing this week.
The lobbying is led by leading UK and European banks who have branch networks in the Republic of Ireland which were excluded from the Government's guarantee.
The largest of these is Ulster Bank, a subsidiary of NatWest owner Royal Bank of Scotland. It has 132 branches in the Republic and is reported to account for 20% of retail savings in the Republic.
National Irish Bank is owned by Danske Bank and has a network of 59 branches in the Republic.
Halifax Ireland was set up two years ago as a rebranding of Bank of Scotland's 25 branches.
Reader views (2)
The Irish government guarantees all savings and deposits, money floods in from around the globe, liquidity is restored to Irish banks, companies relocate to take advantage, jobs are created, drinks all round!
- David C, Purbeck, 01/10/2008 16:58
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Several banks in Ireland have deep problems with bad debts incurred by construction companies and house builders. The Irish taxpayer is now faced with the prospect of enormous costs at a time when the economy is already in recession.
- Bethany, London, 01/10/2008 16:47
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