Irish banks need additional reinsurance segment euro

Most Popular posts from other blogs...

March 31, 2011 last updated at 20: 56 GMT Patrick Honohan, Governor of Ireland's Central Bank announces reinsurance segment euro ShortfallThe Republic of Ireland banks need to survive an additional reinsurance segment euros (£ 21 billion), the financial crisis.

The figure follows a stress test on the Irish banking system by a group of independent experts and Central Bank of the country.

Four lenders have been tested - Allied Irish banks, Bank of Ireland, educational building society (EBS) and the Irish life & permanent.

Allied Irish banks takes the most money and have to increase 13.5 euro.

Bank of Ireland required 5.2 euro, EBS 1.5 euro and Irish life billion euro.

The total amount in the Irish banks cast, as the financial crisis will newly be euro near 70bn.

Professor Patrick Honohan, Governor of that Central Bank, said: "the new requirements are necessary to restore market confidence, and banks have to meet enough capital to ensure even the markets darkest estimates."

The most important story of

, that the grievous consequence is, that it a lack of capital of £ damage totals in these banks read more... "This is a huge sum for them to find."

Originally posted at the end Robert Peston business editor, BBC News Dublin already has the most Anglo Irish Bank, Allied Irish banks and the EBS after previous save the banks.

Mr Honohan said it was likely that in the context of the next infusion of funds, the other two banks, nationalization - Bank of Ireland and Irish life & permanent - would now have to avoid taken in State control.

Insert money apart from the 85bn euro EU IMF Bail-Out agreed to in November be used to finance the latest recapitalisation.

The banks will be determined six months - unreleased - goals to reduce their huge borrowings in the next few years through a process of asset sales.

Mr Honohan said, however, that the banks should be able to ' fire sales' to avoid that would be thrown by the amount of money from the disposal.

Marchel Alexandrovich, European financial economist, Jefferies international, said the results of the stress tests, which were expected in the financial markets.

"Our first impression is that the question of whether this is enough remains to stay one," he said.

He also pointed that it was on no indication how the banks senior of bondholders, handle, the fear that they may be forced to create greater losses on their loans.

Trading in shares of the banks was suspended for the day to the stress test announcement.

The European Central Bank (ECB) had been expected, a new 60bn euros in the medium term financing agreement, the Irish banks offer to give a reliable source of cash.

Continue reading the most important story

Ireland's 2010 Bail-Out:

Loss potentials from EU22bn of IMF18bn of Irish State pension fund35bn for banks50bn provided for budget deficit

Support for Irish banks:

70bn euro recapitalisation of, of which: 46bn, date24bn after latest stress150bn euro short-term financing, of which tests added: 70bn of Irish Central bank80bn of ECBBut the announcement that announcement was due at the same time as the Irish Central Bank, has been moved now because of the disagreement among the Governing Council of the ECB, according to a report by news agency Reuters.Mortgage Meltdown

Losses in the Irish banking system from collapse of a speculative bubble in commercial real estate have so far surrendered where the banks for the financing of hotels and shopping malls billions were borrowed.

But the latest stressing one emerging housing meltdown instead focused on.

The stress tests assumed that a level already reached a cumulative breakdown of real estate prices by 62% - in some parts of the Republic.

It also adopted the unemployment rate peaking at 14.9%, a projection of some economists as too weak, given the fact that the most recent data is the rate at 14.7% already criticised.

However US asset manager BlackRock provided the Irish Central Bank, the this year's stress tests to verify their credibility increase.

A previous round tests could spot serious problems as regards the banks just before some of them financial support required.

Haircuts

The 70bn euro poured into the banks, almost half of the Irish economy is annual output or about 17,000 euros per Irish citizens - a burden that the Government is considered unacceptable.

The newly elected Taoiseach, Enda Kenny, lenders, banks losses to parts asked was, but this is probably resisted to other European countries are.

In the early stages of the banking crisis in 2009, the Government gave a blanket guarantee for their banks debts.

Newly elected Taoiseach, Enda Kenny, wants lenders to a share of the losses of the banks

The Republic feared European partners a standard of Irish banks one European banking crisis could trigger.

You insisted that Dublin still the guarantee as a condition of last year's Bail-Out - much to the chagrin of the opposition parties to honour, who have now taken by the Government.

But only on the amount of damage euro of banks remaining long-term debts yet the guarantee, to the Irish Central Bank fall under.

There remain around 40 euro debt, potentially a "haircut", forcing creditors - including United Kingdom, to could given us and German banks - losses.

And the Government guarantees and capital injections were also the recipients of 150bn Irish banks euro of short-term financing from the Irish Central Bank and the ECB.