Anglo Irish Bank Is Such A Mess It Can't Even Transfer Its Debt To The Government

Ireland

Photo: AP

Anglo Irish Bank is going to be late in transferring its second tranche of debts to the Irish government, mostly because it can’t sort out the paperwork quick enough. The transfer was supposed to occur between Anglo Irish and Ireland’s NAMA (National Asset Management Agency) today. Several other Irish banks, including AIB and Bank of Ireland, were able to make the transfer today.

The total transfer of the second trance is to include loans totaling €13 billion. The difference between the first and second tranche is that this includes a 50% haircut, and some loans from the country’s damaged property development sector.

There are some concerns that the government’s acquisition of all this loan debt could put it in a worse position than the country of Greece. It’s sovereign debt has been downgraded today, and its banking sector is under pressure in the CDS market.

Here’s what the Irish cuts would look like in the U.S. >

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