Irish banks

Bank of Ireland may get €3.2 billion in additional capital from the government leading to 79% national ownership. AIB is already facing 94% state ownership which may go to 99%. The objective is to raise tier one capital rations to 12% – international norm. This will mean that the banks will lend even less in the interim. The value of AIB now is about €367 million. Corporate deposits in AIB and BoI fell by €22 billion since June. They may as well be looked at together as we will own both of them. Bank shares on Thurdsday 24 November were AIB 30 cents, BoI 25.6 cent and Irish Life and Permanent 59.7 cents.

Irish ten-year debt bonds hit 9.08% on 24th when german bonds were 6.5% less ie 2.58%