Newspaper article The Evening Standard (London, England)

Irish Banks Win Softer Bailout Terms Than British Lenders

Newspaper article The Evening Standard (London, England)

Irish Banks Win Softer Bailout Terms Than British Lenders

Article excerpt

Byline: NICK GOODWAY

IRELAND'S big three banks have been handed a n7.5 billion state bailout on far better terms than the equivalent [pounds sterling]37 billion package handed to Royal Bank of Scotland, HBOS and Lloyds TSB by the British Government.

But Dublin also appears to have won greater commitments from its banks to increase their lending to consumers, homebuyers and small business during the recession.

"I always made it clear that I wouldn't rush a recapitalisation," said Brian Lenihan, the finance minister. "Other countries have proceeded in haste and made mistakes." Ireland became the first country in Europe to guarantee all savers' money when the government stepped in on 30 September.

Dublin will invest n2 billion in new preference shares in each of the country's two largest banks, Bank of Ireland and Allied Irish Bank.

These shares will pay interest of 8% a year and give the government 25% voting rights on key issues. …

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