€10 Billion recapitalisation programme for banks
Banks will be getting an early Christmas present with the news that the government has announced a €10billion recapitalisation programme.
http://www.rte.ie/business/2008/1214/bank.html
The government hopes to make credit more easily available to “individuals and businesses in the real economy. This initiative will help to foster and encourage the flow of funds to the economy, and limit the impact of financial market difficulties on businesses and individuals. “.
The governments decision may receive a mixed reception from the public, shareholders of credit institutions and businesses but it must be seen as a brave and needed move by a government that has been less than decisive in their dealings to date.
The €10billion will be funded through the National Pensions Reserve Fund or otherwise. On September 30th 2008 the outturn of the National Pensions Reserve Fund was -17.3% since January 1st 2008. The monetary value of the fund stands at €18.7bilion.
