FRANKFURT (MNI) – The following is a verbatim text of the European
Central Bank’s statement welcoming today’s announcement by Ireland of a
restructuring and recapitalization plan for its banking sector:
“The Governing Council of the European Central Bank (ECB) welcomes
the Irish authorities’ rigorous assessment of the capital needs of Irish
banks and supports the government’s commitment to ensure that these
capital needs are met in a timely manner. As a result of this process,
E21 billion of core Tier 1 capital and E3 billion of contingent capital
will be injected into Irish banks.
This will substantially strengthen the banks and give them a sound
capital basis. Such a situation of solvency is a prerequisite for
continued access to Eurosystem refinancing. Against this background, the
Eurosystem will continue to provide liquidity to banks in Ireland.
The Governing Council also supports the Irish banks’ plans to
deleverage and downsize their balance sheets. This will help these banks
over time to regain market access and to play their important role in
providing credit to the Irish economy.
The aforementioned measures are to ensure the full implementation
of the EU/IMF programme.”
[TOPICS: M$$EC$,M$X$$$,MT$$$$,MGX$$$,M$$CR$]
