IRELAND: ANGLO IRISH BANK, NATIONWIDE BUILDING SOCIETY TO BE CLOSED BY GOVERNMENT?
November 27th, 2010Via: Irish Examiner:
Amid speculation last night that the rate of interest to be charged on the EU/IMF bailout could be as much as 6.7%, Fine Gael’s finance spokesman Michael Noonan said that kind of rate was “far too high” and unaffordable on any reasonable projection of growth.
The Department of Finance said the interest rate had still not been finalised, but given that much of the loan would be repayable over nine years the rate could be higher than the 5.2% charged to Greece but would not be as high as the 6.7% being quoted by some brokers.
Meanwhile, Anglo Irish Bank, which was downgraded to junk status yesterday evening, is expected to be closed swiftly, together with the Irish Nationwide Building Society, under the EU/IMF loan plan.
Officials hope to finalise the details of the €85bn package later today and have EU finance ministers approve it tomorrow.
