Monday, October 11, 2010

Banks will be paud no matter what!

The Irish Government has and continues to recapitalise a number of Banks in the process creating billions of Irish Government Debt.

This debt is sold in the form of Government Bonds thatr mature at a particular date and with a particular interest rate attached to them. Investors by the debt and upon maturity receive payment for it.

In the case of two of Ireland's biggest banks, AIB and BOI, who have received millions in state aid they have gone off and purchased the debt they have created so that when it matures they will receive even more money from the State!

At best Lenihan believes of the 50 billion we spend bailing out the banks we will get back 16 billion. But how much will we have to pay out to the Bank

Below are the biggest Bank holder of Irish Government Debt.

Royal bank of Scotland £4.3 billion
Allied Irish banks €4.1 billion
Bank of Ireland €1.2 billion
Credit Agricole €929 million
HSBC €816 million
Danske Bank €655 million
BNP Paribas €571 million
Groupe BPCE €491 million
Societe Generale €453 million
Banco BP1 €408 million

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