Irish Government is going to save the banks by Zivka Deleva

Irish government is going to buy toxic assets to improve the it’s own bad banking system. The Finance Minister Brian Lenihan announced that Irish Government is going to give extra 8.3 billion euro as a cash injection into Anglo Irish Bank. Ireland is one of the European countries with the most debt in these two years. The Irish Government had problems with the bankers acted pretty much recklessly. It is very much known that the state is going to take the majority shares in Allied Irish Bank, where it already owns 25 percent, but it has minor 16 percents in the Bank of Ireland. The Irish banks didn’t answer adequate to the global finance crisis. "Some institut! ions were worse than others. But the fact is that our banking system, to a greater or lesser extent, engaged in reckless property development lending. In too many cases there were also shoddy banking practices. The banks played fast and loose with the economic interests of this country." – said Finance Minister Lenihan. This is not the first state help to the Irish banks, it has already given 11 billion euros to the three biggest Irish banks. Wanting to nationalize it, the government is planning to inject another 2.6 billion euros into the Irish Nationwide Building Society. The sum of 81 billion euros of the assets are bought by National Assets Management Agency, or the well known “bad bank”. It is still a governmental agency which exists since last year for the cash of the taxpayers who buy highly risky toxic assets.

by Zivka Deleva for Cantell TV (http://cantell.tv)

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