Banks Shares Up, Euro Down

Shares in Irish Banks have soared in the aftermath of €85 billion bailout agreement, despite the Euro floundering at a two month low.

At one point today, Irish Life and Permanent made a 61% jump, but has now slipped back slightly. Bank of Ireland, the country’s largest lender, made a 19% recovery at 10.10am, while Allied Irish Banks, the second-largest, gained 6%.

However, continued negative news and speculation of a trouble in both Spain and Portugal's economies led the euro to a two-month low against the dollar.

Ireland's Head of Financial Regulation, Matthew Elderfield, said the measures announced in the National Recovery Plan provided an "immediate and significant strengthening" of the capital position of the Irish banking sector.

His colleague at the Irish Central Bank Governor Patrick Honohan said that the "backstop" funding now available meant market confidence would return.

"The international authorities have demonstrated their confidence that Ireland can bring its debt dynamics under control. The programme also endorses the current policy approach to banking.

"It provides the necessary assurance to achieve a convincing and rapid reconfiguration and downsizing of the banks, putting the Irish banking system on a convincingly secure footing. The Central Bank will continue to provide all necessary support to the system”.

Under the deal, the banks will get as much as €35 billion of aid while senior bondholders, who have been widely responsible for Ireland's need for a bailout, will escape being held accountable for any cost.


Related Northern Ireland Business News Stories
Click here for the latest headlines.

24 November 2010
Irish Credit Rating Downgraded By Agency
Ireland's difficulties seem to worsen by the hour as Standard & Poor's announce they are downgrading the State's international credit rating and placing its banks on "CreditWatch". The news comes just after another international ratings agency, Moody's, announced it would be slashing Ireland's credit rating, following the news of the Irish bailout.
15 December 2010
Brian Blocks Bank Bonus Bonanza
The Irish Republic's Finance Minister has blocked the payment of €40 million in bonuses by the state dependant AIB bank. Brian Lenihan wrote to Allied Irish Banks (AIB) saying that state support for AIB was now conditional on the non-payment of bonuses, no matter when they may have been earned.
13 September 2019
Boost For Newry As Retailers Flock To The Buttercrane
Newry's retail offering is set for a boost with the opening of Lidl and Sports Direct at the Buttercrane Shopping Centre, subject to planning. The two companies will begin trading at the site in 2020 if all goes ahead, the Newry Chamber of Commerce has announced.
03 September 2012
America's Retail Giants View Irish Consumer Products
Senior executives from America's largest retail chains are in Dublin with Enterprise Ireland today to view Irish consumer products with particular potential for large-scale distribution in the American retail market. Between them, these US retail chains have 11,000 stores and sales valued at $182bn per year.
31 July 2009
Developer Loses Court Bid To Appoint Examiner
Six companies controlled by the well known property developer Liam Carroll, will not be appointed an examiner, a court has decided.