Ireland tries to convince investors to trust banks (Yahoo!)

DUBLIN – As the Irish Government presented the most difficult budget in the history of the nation this week, Stephen Henry, a worker at a credit rating service, suspended glower at the Irish Bank Anglo building face green of St. Stephen, the heart of Dublin.

"Budget will raise my taxes, reduce my income and cut my standard of living, and these guys are the perpetrators," Henry said. "They are soon disappeared, better. »

There is no time to wait: regulators ordered closed Bank and the nameplate on most sadly famous financial institution Ireland - Bank much blame to precipitate the crisis of the country – to be taken.

Is closing part of a broader effort by the Ireland to convince global investors, just two weeks after that applied Dublin international bailout $ 112 billion, that some more banking problems are avoided in the shadow. If all goes well, investors will be regain confidence in the country and players of capital and foreign banks might be tempted to pull the wreck bargains.

Regulators must be "more convincing that we were"the worst will soon be behind the Ireland banks, said Patrick Honohan, the Governor of the Central Bank of the country."

Which could prove to be a stiff challenge. Again and again, as the banking crisis of the Ireland intensifies, estimates increased for cleaning. Bill for taxpayers bail-outs increased 111.13 billion, 56% of gross domestic product, the result of a Government decision to rising losses of the banks.

Fitch Ratings agency credit rating dropped three notches Ireland Thursday, warning that the aggressive purging bad banks, entered into a new wave of the austerity of the economy, debt program could "stall recovery '."

In addition, as the country tighten his belt to help pay the banking services, the default rates on residential mortgages now 5-10%, projected as owners are trying to meet the monthly payments.

So far, shoe size losses were on commercial real estate loans, banks made extensively during the housing boom. Regulators have forced the two major institutions, Allied Irish Banks and Bank of Ireland to collect more species of losses worsen.

But when the Ireland received his recent bailout, the international monetary fund has ordered another 13.23 billion dollars pumped into banks immediately, in part to cover against an increase in possible bankruptcy mortgage. 33 Additional $ billion is pending if the losses of the banks are larger than expected.

The rescue plan is supposed to tide Ireland over the years he covers and give it a room to fix its finances until he can borrow once more on the financial markets.

It is always clear whether the money will be enough step. If the Irish owners who feel especially the duty to make their payments, change their behavior, which may increase the default values and push banks operating reserve.

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