DUBLIN, March 30 (Reuters) – Ireland’s finance minister, its “bad bank” and its financial regulator made a series of announcements on Tuesday clarifying details of how it plans to tackle the country’s banking crisis.
Here are the highlights.
* Bad bank clarity
Ireland’s “bad bank”, the National Asset Management Agency (NAMA), said it would buy a first batch of loans with a nominal value of 16 billion euros ($21.6 billion) for 8.5 billion euros, representing an average discount of 47 percent.
It said it had completed the transfer of a first tranche of loans from two building societies EBS Building Society and Irish Nationwide Building Society.
It said it expected to complete the transfer of loans from all five affected institutions — Bank of Ireland, Allied Irish Banks, Anglo Irish Bank and the two building societies by the end of the year and no later than end February 2011, the deadline set by the EU Commission.
* Capital requirements
The regulator said banks must attain a level of 8 percent of core Tier 1 capital by the end of the year. It said the level of capital must be met after taking account of all future losses and would be principally in the form of equity, a 7 percent equity requirement.