Allied Irish Banks suffers massive withdrawals of cash

Saturday, November 20, 2010
By Paul Martin

• Loss of of $13bn deposits forces resort to state aid
• Loans from ECB have tripled to €27bn since June

Phillip Inman and Jill Treanor
Guardian.co.uk
Friday 19 November 2010

Ireland’s financial woes deepened today after its second largest bank revealed that an enormous outflow of funds during the year had tripled its reliance on central bank funding.

During a day of feverish speculation over the size of the bailout being negotiated by the Irish government with the EU and International Monetary Fund, Allied Irish Bank reported that its dependence on “monetary authorities” had risen to €27bn (£23bn) from below €10bn in June.

The bank admitted it was increasingly reliant on central bank funding after suffering €13bn of outflows this year, matching the large loss of funds reported earlier by the country’s largest bank, Bank of Ireland. In a gloomy statement, the bank, which is now more than 90% state-owned, said: “The outlook in our markets is uncertain with additional stress likely from the implementation of the Irish and UK budgets. We are carefully and thoroughly assessing these impacts and market conditions.”

The Rest…HERE

Leave a Reply

Support Revolution Radio