AIB has increased its estimate of how much it will have to set aside to cope with bad loans this year to €4.3bn.In a trading update issued to the Irish Stock Exchange, the bank blamed the worsening economic conditions in Ireland for the bigger charge.
It also said mortgage arrears in Ireland were climbing and stood at 2% of total mortgage loans at the end of March, compared with 1.5% at the end of December.
However, AIB said that when the bad debt charges were excluded its trading profit... read more »
Minister for Finance Brian Lenihan has said that this afternoon's Budget will not be easy for anyone, but that it will be fair.Mr Lenihan is to announce the details of the Budget, which is expected to impose extra taxes and spending cuts worth around €3.5bn.
The Cabinet will meet in Government Buildings this morning for a final discussion on the Budget, but at this stage the decisions have already been taken.
After ten sessions, Ministers hope they have a package that can start the recov... read more »
House prices in the North have dropped by nearly 30% over the last year, according to a new quarterly survey.It confirmed 2008 was the worst year for the housing market since the start of the 1980s.
The figures were contained in the latest University of Ulster Quarterly house price index, produced in partnership with the Bank of Ireland and the Housing Executive.
The survey showed prices had fallen by just over 28% in 2008.
It also confirmed the continuing low volume of house sales, wit... read more »
Former Anglo Irish Bank chairman Seán FitzPatrick was given tens of millions worth of sterling and dollar loans, it has emerged.
Irish Nationwide gave tens of millions worth of sterling and dollar loans to Mr FitzPatrick as part of his loan transfers between the two institutions to conceal up to €122 million in borrowings from Anglo Irish.
The Irish Times reports that Irish Nationwide provided Mr FitzPatrick with loans of $56 million and £14 million on 26 September, 2007.
The ... read more »
Fine Gael Leader Enda Kenny has said the pay and actions of top banking executives must be reviewed before the Government's finalises its €7bn recapitalisation plan for Bank of Ireland and AIB.
Speaking on RTÉ Radio's Morning, Mr Kenny said taxpayers' money should be carefully employed
Last night, Minister for Finance Brian Lenihan said there was much tougher talking to be done before the Government signs off on the plan.
He said the Government will call the shots and will have a sub... read more »
The Central Bank says it expects the economy to contract by 4.7% this year, as Ireland continues to be impacted by global recession and falling demand.
In its latest economic forecast, the Central Bank says the contraction will lead to significant job losses with 100,000 fewer people working by the end of the year.
The bank says unpalatable short-term measures are needed if the economy is to stabilise in 2010.
In one of the most negative outlooks published so far, the bank says the co... read more »
The Government has announced support for a recapitalisation programme of up to €10 billion for credit institutions.
In a statement issued this evening, it said its objective was to ensure the long-term sustainability of the banking sector in Ireland.
The Government said it would support the programme alongside existing shareholders and private investors, and would underpin its contribution through the availability of credit to individuals and businesses in the real economy.
Afte... read more »
The US government has agreed to a $306bn (€244bn) rescue plan for Citigroup in the latest attempt to bolster a financial services industry in turmoil.
Citigroup's package may also prove a template for other banks that are expected to face growing losses as economies worldwide sink into recession.
Credit losses once concentrated in mortgages are already bleeding into new, large areas such as credit cards and commercial real estate.
The nation's second-largest bank by assets ha... read more »
The Minister for Finance, Brian Lenihan has said the Government has not ruled out public investment in Irish banks, but said banks had to demonstrate a capacity to attract private investment.
Speaking on RTE's this week, Mr Lenihan said the State putting money into the banking system would be a last resort and it was entirely legitimate that the taxpayer should not be asked to capitalise banks.
He said he had received a Government commissioned report confirming there was no threat to... read more »
Official figures show that the annual rate of inflation fell back to 4% last month from 4.3% in September.
The Central Statistics Office said lower petrol and diesel prices and falls in the prices of clothes and footwear were the main factors in the fall.
The CSO said the October figures did not include rises in excise duties announced in the Budget, as they took effect after the figures were compiled.
Overall, prices fell by 0.2% compared with September.
There was a 2% fall in price... read more »
