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Liquidation for former Anglo Irish Bank

Date Added: 07/02/2013  

The former Anglo Irish Bank is set to go into liquidation, it has been announced.

It was revealed that the bank, which was nationalised in a bid to stabilise the institution during the recession, is going to have to close down.

This move is said to pave the way for a restructuring of Ireland's most controversial bank bailout and could ease the debt situation in the country.

As a result of the liquidation of the former Anglo Irish Bank, the Republic will be prevented from having to pay €3.1 billion (£2.7 billion) to Anglo Irish Bank bondholders.

The legislation went through parliament after details of negotiations between the Irish government and the European Central Bank (ECB) were leaked to the media on Wednesday (February 6th) and the move is set to be a controversial one.

Patrick Honohan, the Republic of Ireland's central bank governor, was in charge of the negotiations with the ECB, which were described as being "chaotic" by the leader of the Socialist Party in the country Joe Higgins.

Irish prime minister Enda Kenny argued that the liquidation of the former Anglo Irish Bank - which is now known as the IBRC - is "long overdue" and he claimed Ireland's debt levels would now be below Germany's were it not for banking costs.

Ireland is one of the countries in Europe to have been particularly heavily hit by the effects of the recession, but Mr Kenny has been widely praised for the way he has handled the economy.

Aldermore chief executive Phillip Monks recently told the Daily Telegraph that one of the problems with business lending is that Irish banks have cut back on the amount they are willing to approve in loans due to the nation's precarious financial situation.

He suggested alternative lenders are going to come to the forefront over the course of 2013.

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Posted by Michael Beam

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