Irish banks move on real estate loans

Stephen Beard Mar 30, 2010
HTML EMBED:
COPY

Irish banks move on real estate loans

Stephen Beard Mar 30, 2010
HTML EMBED:
COPY

TEXT OF STORY

Bill Radke: In Ireland, today has been dubbed “bailout Tuesday.” Our Europe correspondent Stephen Beard reports the government in Dublin will announce what it calls a once-and-for-all attempt to sort out the Irish banks.


Stephen Beard: Today, the Irish government will begin taking over about $100 billion worth of bad real estate loans to take the pressure off its beleaguered banks. This is the latest phase in the long struggle with the financial crisis.

Owen O’Callaghan is with BNP Paribas. He says so far, the Irish government has done a stellar job — especially in tackling its budget deficit:

Owen O’Callaghan: It’s more advanced in cutting unnecessary spending, or at least spending that is no longer matched by revenues than any other European country. So its progress it’s made there has been very impressive.

But today’s grand bank bailout could backfire. If the borrowers default on the loans, the Irish government could wind up owning hundreds of pubs, empty office blocks and shopping malls.

In London, this is Stephen Beard for Marketplace.

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.