Draft Bank Resolution Legislation Published

The Irish government has published draft legislation fulfilling a commitment made as part of the EU – IMF financial assistance package.

The bill, entitled the Central Bank and Credit Institutions (Resolution) Bill 2011, has been laid before the Oireachtas. The new proposed legislation provides for a special "resolution regime" for banks and will give the Governor of the Central Bank certain powers to intervene in the affairs of banks and credit unions.

The 31st Dáil will convene on the 9th of March. The session will see the election of a new Taoiseach and the putting in place of a new Government.

A timetable for the enactment of the proposed legislation will be a matter for the next Dáil.

Meanwhile, a rise in interest rates and a further weakening of the euro are on the cards according to the latest market forecast from Ulster Bank.

According to the forecast, our record low interest rates could come to an end within six months, with the ECB expected to begin gradual hikes of 0.25%

The forecast from Ulster Bank also says the euro could be vulnerable if the Europe-wide debt crisis continues to intensify, but the bank's chief economist Simon Barry says this would not be a bad thing for Irish exporters.

(DW)