BRUSSELS (MNI) – The European Commission is “in very close contact”
with Dublin as the Irish authorities prepare to unveil on Thursday the
total cost of winding down troubled lender Anglo-Irish Bank, the
European Commissioner for Economic and Monetary Affairs, Olli Rehn, said
on Wednesday.
“The Irish government is planning to communicate the final
estimates on the cost of Anglo Irish tomorrow,” Rehn told reporters in
Brussels. He said the Commission was ready support the Irish government
if need be.
Irish 10-year bond spreads hit a fresh high over the benchmark
German Bund on Wednesday as investors continued to worry about the total
cost of bailing out the banks and how it might impact Ireland’s debt and
deficit levels.
Irish spreads widened to 461 basis points above the benchmark Bund
— their highest level since the Euro began. They have since tightened
by 4 basis points.
Anglo-Irish Bank became insolvent when the Irish property boom
collapsed. After committing close to E23 billion to the bank, the Irish
government said earlier this month it would split it in two and wind
down or sell off bits of it.
Ratings agency Standard & Poor’s has said that more than E35
billion may be needed for Anglo-Irish but that figure isn’t acknowledged
by the Irish government.
–Brussels: 0032 487 (0) 32 803 665, echarlton@marketnews.com
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