Ireland’s ‘Bad Bank’ to Pay Last Slice of €30 Billion Debt

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Ireland’s recovery from the crash that led to an international bailout has reached a symbolic turning point as the country’s “bad bank” pays off the final slice of the €30.2bn senior debt it borrowed to clean up the financial system, the Financial Times reported. Nama, the national asset management agency, has signalled it will redeem the final €500m of the government-guaranteed debt this month, three years ahead of the target set at the outset of its work in 2009. The redemption eliminates a contingent liability on the Irish state that dates from the height of a financial crisis that led to nationalisation of the country’s banks and a bailout from the IMF and the EU. “It’s a main objective achieved,” said Frank Daly, Nama’s chairman. “It’s not just important to Nama, it’s important for confidence in the state, confidence among rating agencies, confidence among the European Commission.” Ireland’s economy is growing strongly again — and Dublin has taken advantage of investor sentiment to sell bonds at negative yields. Read more. (Subscription required.)