Ireland

Ireland's bailout package should be made more flexible to help the eurozone struggler recover faster from its crisis and ensure its return to debt markets, Europe's top economics official said in an opinion piece in an Irish newspaper, Reuters reported. In an article to be published in the Sunday Business Post, Olli Rehn called for the interest rates on Ireland's loans and the maturity of the debt to be lengthened. "Ireland provides hard evidence that the EU-IMF conditional financial support approach is working," Rehn, the EU's economic and monetary affairs commissioner, wrote.

The state is facing a legal costs bill estimated at up to €7 million following property investor Paddy McKillen’s successful legal challenge to the proposed acquisition by the National Assets Management Agency of about €1.4 billion in loans of his companies, the Irish Times reported. Mr McKillen secured a legal costs order from a seven-judge Supreme Court against Nama yesterday as it emerged the agency has now decided not to acquire the loans that were at the centre of High and Supreme Court proceedings lasting 12 days and involving huge costs.

The impact of the recession on families is reflected in cases brought to court, according to a new report, the Irish Times reported. The annual report of the Courts Service shows an increase in bankruptcies, orders for possession, judgments for recovery of debt and judgment mortgages. However, there has been a decline in cases involving companies, with a 9 per cent decrease in orders to wind up companies, a 6 per cent fall in applications to restrict directors and a 21 per cent drop in new cases admitted to the Commercial Court list in the High Court.

Deutsche Bank has expressed an interest in purchasing the €457 million loans held by developer David Daly and his children with Allied Irish Banks, which were called in last month by the National Asset Management Agency, the High Court heard yesterday, the Irish Times reported. Moving the loans to Deutsche Bank would be “hugely” in the interest of the Dalys who, despite having initiated the talks with Deutsche Bank, are being excluded from the current negotiations by Nama, Michael Cush SC said.

Moody's on Tuesday night cut Ireland's credit rating to junk, the Irish Times reported. The ratings agency said it was downgrading the country's bond ratings by one notch to Ba1 from Baa3 with a negative outlook. Ireland joins Portugal and Greece in becoming the third euro zone country to have its ratings cut to junk. Portugal's rating was cut four levels to Ba2 just over a week ago.

Bank of Ireland secured temporary approval from the European Commission for recapitalisation of up to €5.35 billion by the State ahead of yesterday’s extraordinary general meeting. The commission’s final approval of the State recapitalisation depends on the submission of an updated restructuring plan by the end of this month, the Irish Times reported. Approval is conditional on ensuring a return to long-term viability, an adequate participation by shareholders and subordinated bondholders and proper measures to limit the distortion of competition by the State support.

Building group McInerney Holdings has written to its shareholders saying that it is time to liquidate the company, RTÉ News reported. The board has set the date for an extraordinary general meeting of shareholders for July 29. It says McInerney Holdings now has 'no meaningful assets of worth and no bank facilities' and as a result there is no realistic alternative to a liquidation. Eight months ago, the group de-listed from the stock exchange, having already gone into examinership.

Ireland's credit rating may be cut to junk by Moody's Investors Service after Portugal yesterday lost its investment grade rating, analysts said Wednesday, the Irish Times reported. Moody's, which slashed Portugal four notches yesterday to Ba2 from Baa1, in April lowered Ireland's credit rating to the lowest investment grade Baa3 and left country's outlook on negative. The ratings company cut Portugal's rating in part because the nation may not be able to return to debt markets in the second half of 2013.

The Central Bank is planning to review how banks set pay for executives and staff in the final three months of the year, according to a first annual update of its strategy for banking supervision, the Irish Times reported. A decision will also be taken by the end of September on whether to introduce credit limits to prevent the banks repeating the mistakes of the past by lending too heavily into any one sector. The Central Bank plans to publish details on the limits by the end of the third quarter and introduce them by the end of the year.

Businessman Seán Quinn and his family may challenge the jurisdiction of the Irish courts to hear a legal action by Anglo Irish Bank aimed at preventing the family transferring assets from Swedish companies behind the family’s properties in several countries, the Irish Times reported. Anglo, owed €2.8 billion by Quinn interests, claims the Quinn family set up a “mirror corporate structure”, the Cranaghan Foundation, in a “systematic attempt” to transfer assets to “mirror” Quinn companies for the benefit of the family, including Mr Quinn’s children and grandchildren.