ECB feels left out of Irish bill

Published on 20 December 2010 at 12:05

Cover

“ECB fears on Irish bank bill,” leads the Irish Times. In a report signed off by ECB president Jean-Claude Trichet, the European Central Bank has expressed “serious concerns” about Ireland’s controversial Credit Institutions (Stabilisation) Bill, passed in parliament on 15 December. The emergency legislation gives Ireland’s Minister of Finance Brian Lenihan sweeping powers until 2012 to reorganise Ireland’s crippled banking sector, including “the power to overrule shareholders, sack directors, impose losses on bondholders and transfer loans and deposits out of Irish banks.” The ECB is fearful of the risks involved in providing liquidity to Irish banks and is concerned that the bill could infringe on its own rights. “The most recent data show Irish banks having €136 billion in loans outstanding from the ECB – a quarter of the total in the euro zone”, the Dublin daily notes.

Tags

Was this article useful? If so we are delighted!

It is freely available because we believe that the right to free and independent information is essential for democracy. But this right is not guaranteed forever, and independence comes at a cost. We need your support in order to continue publishing independent, multilingual news for all Europeans.

Discover our subscription offers and their exclusive benefits and become a member of our community now!

Are you a news organisation, a business, an association or a foundation? Check out our bespoke editorial and translation services.

Support independent European journalism

European democracy needs independent media. Join our community!

On the same topic