Ngày tải lên :
22/03/2014, 17:20
... been
providedby the CentralBank of Ireland.
Thispaperdiscusses the fiscalcosts of the IBRCbailout. The issuescoveredareasfollows:
The balancesheet of the IBRCand the crucialroleplayedbyitsELAdebts.
The process of grantingandrepayment
of ELAand the role of the ECBinthisprocess.
The function of the promissorynotesandtheireffectonofficialdebtanddeficits.
Unfortunately, ... AngloIrishBank
At the end of 2007,priorto the financialcrisisthatrockedIrelandfromlate2008onwards,Anglo
had€58.4billionindepositsand€23.6infundingfromdebtsecurities. The subsequentyears,amid
financialcrisisandnationalisation of the bank,saw the vastmajority of thesedepositspulledfrom
the
bankandasubstantialreductioninfundingfromdebtsecuritiesasinvestorsviewed the bankas
toobigarisk.Combinedfundingfromdepositsanddebtsecuritiesfellfrom€82billionat the end of
2007to€19billionat the end of 2010.
Some of the fundstopay
offdepositorsandbond‐holderscamefromsellingsome of the bank’s
assetsandfromloanrepayments,whichsaw the totalsize of the balancesheetfallfrom€92.6
billionat the end of 2007to€68.6billionat the end of 2010.Butmost of the fundscamefrom
borrowing
fromcentralbanks.Atfirst,most of Anglo’scentralbankborrowingtook the form of
participationinstandardEurosystemrefinancingoperations.However,theseoperationsrequire
counterpartiestopledgeparticulartypes of collateralinreturnforborrowingmoneyandAnglo
begantorunout of eligiblecollateralas the Irishbanking
crisisbeganinlate2008.
InMarch2009, the CentralBank of Irelandagreeda“MasterLoanRepurchaseAgreement”with
AngloIrishBank,lending€11.5billionagainstcollateralthatdidnotqualifyforstandardEurosystem
monetaryoperations.
1
Thiswas the first of aseries of so‐called“ExceptionalLiquidityAssistance”
loansthatweremadeto the bank. (The mechanicsandlegalities of theseloanswillbediscussedin
the nextsection.)As the bankingcrisisintensifiedthrough2010,ELAborrowingsrampedup
significantly.By the end of
2010,Angloowed€16.9billioninEurosystemborrowingsandhad€28.1
billioninELAdebtsto the CentralBank of Ireland.
InFebruary2011,Anglowasinstructedtotransfermost of itsremainingdepositstoAlliedIrish
Banksalongwith the Bank’sholdings of about€12billioninseniorbondsissued
toitby the National
AssetManagementAgency(NAMA)inreturnformost of itsportfolio of commercialpropertyloans.
Because the NAMAbondshadbeenusedascollateralforEurosystemborrowings,Anglohadtopay
offmost of itsECBloans,whichfurtherincreaseditsdependenceonELAfrom
the CentralBank of
Ireland.By the end of June2011,Angloowed€38.4billioninELAandhadEurosystemborrowings of
only€2.4billion.
1
Seepage102 of Anglo’s2009annualreport.
... Asdescribedabove, the purpose of the TargetsystemistoseethatJeancantransferhis
€100fromhisIrishaccounttohisFrenchaccount.Sinnhasproposeda
number of waysto
restrict the operation of the Targetsystem.Byrestricting the freemovement of capitalwith
the Eurozone,theseproposalsareeffectivelyacalltoend the commoncurrency.
Thesecreditshavenone of the characteristics of loans.Theyarenotinstigatedby the
Bundesbanksupplying
itsownfundsto the CentralBank of Ireland.Rather,theyrepresenta
transfer of fundsout of IrelandtowardsGermany.
Morerecently,anumber of mediacommentatorshavefocusedon the ideathatGermanyissubject
toanenormouscreditriskinrelationtoapossible“default”onitsIntra
‐Eurosystemcreditsin the
event of aEurobreak‐upandconsequentlargefiscalco...