Small Irish firms whose loans have been sold to foreign “vulture funds” may face millions of euro in tax charges and penalties from Revenue, the Irish Times reported. This comes after it was discovered that the acquisition of distressed loan books, typically by special purpose vehicles (SPVs), can trigger a demand for withholding tax on the interest paid on individual loans, for which the borrower is liable. Companies must generally deduct 20 per cent tax on payment of interest under Irish law.

Euro-area bank supervisors are looking at countries like Ireland with a history of tackling soured loans for hints on how to work out the €1.2 trillion bad debt pile that’s plaguing banks across the euro zone, the Irish Times reported. Non-performing loans remain a top priority for the European Central Bank, Daniele Nouy and Sabine Lautenschlaeger, who lead the ECB’s supervisory board, said on Wednesday. As there’s no silver bullet, supervisors are settling in for years of work, learning from the countries with experience of the problem.

The Central Bank has issued a robust defence of its contentious home loan caps, saying commercial banks and mortgage brokers are unable on their own to uphold “prudent” credit standards, the Irish Times reported. The loan caps will neither add to nor relieve the shortage of new homes, the Central Bank said. It added the rules would contribute to a shift in housing demand and supply towards rental accommodation.

Bank of Ireland’s UK subsidiary will not offer mortgages for more than £500,000, according to Des Crowley, chief executive of the division, the Irish Times reported. He said this was designed to reduce the bank’s exposure to modestly-sized, multimillion-pound homes in expensive areas, notably in London. “We’re conservative in the London market, where it is quite heated and it is difficult for first-time buyers in particular to get on to the housing ladder,” he told the Daily Telegraph following the release of the bank’s UK results to the British media.

When Ireland’s “bad bank” announced this week that it would redeem €2.5bn of its debt nine months early, the news should have helped to confirm the country’s emergence as a model of post-austerity restructuring, the Financial Times reported. With the Irish economy growing at 7.8 per cent annually after years of recession, Nama, as the bank is known, can claim to have played its part in the recovery.

Former Anglo Irish Bank chief executive David Drumm was released on bail this morning after issues around the sureties being provided by third parties was resolved to the satisfaction of judge Michael Walsh in the Dublin District Court, the Irish Times reported. Solicitor Aoife Corridon for the defence told Judge Michael Walsh that Mr Drumm’s mother and father-in-law Danny and Georgina O’Farrell had been approved to stand bail. They have lodged €50,000 while the remaining €50,000 has been frozen in their bank account by court order.

The former chief executive of the bank at the centre of Ireland’s financial collapse appeared in a Dublin court on Monday after being extradited from the US to face charges related to one of the world’s worst banking failures, the Financial Times reported. David Drumm faces 33 charges related to transactions carried out before Anglo Irish Bank collapsed in 2008. His extradition and court appearance are seen as a significant step by the Irish authorities to hold former executives of Anglo to account for its collapse in 2008.

Worldview Capital, the dissident shareholder in Petroceltic International that has battled its board for more than a year, has emerged in prime position to gain control of the troubled exploration company after doing a deal with its banks to buy a majority of its $232 million debts, the Irish Times reported. The Cayman Islands-registered fund, run by former investment banker Angelo Moskov, has told the stock market it bought has 69.44 per cent of the senior debt at at “a significant discount to face value”.

The Central Bank has sold another €500 million of the legacy debts of Anglo Irish Bank, bringing total disposals so far to €3 billion, the Irish Times reported. Some €22 billion in government bonds remain outstanding from the 2013 deal to scrap the Anglo promissory note scheme. The 2041 floating rate government bonds were acquired yesterday from the Central Bank and cancelled by the National Treasury Management Agency (NTMA). Following this cancellation the total nominal outstanding for the 2041 bond reduces to €1 billion.

Troubled oil and gas explorer Petroceltic on Monday applied for its shares to be temporarily suspended from trading in Dublin and London until the wrangling over its future is resolved, the Irish Times reported. The move follows a petition to appoint an examiner to Petroceltic by dissident shareholder Worldview, which has a 29 per cent stake in the explorer. Worldview on Friday brought the High Court petition aimed at securing court protection for Petroceltic, which owes about $230 million to its banks and is currently unable to make its repayments.