Very worrying stop press news re Anglo Irish

bloaty

jack_spratt wrote: »

I think you may be getting confused with the Post Office growth bond( Bank of Ireland) and Anglo Irish bond

Sorry, yes.

I have the P.O. Growth Bond Issue 7 and the information posted above was taken from the P.O. website.

I assume this discussion is about both bonds or is it only the Anglo Irish Bond that is risky?

gozomark

this thread is ostensibly about Anglo Irish. However, neither Anglo Irish nor Bank of Ireland have more than very slight risk for savers. Savers in both banks depend on the Irish Govt guarantee.

JP45

Here's some reassuring news from an item headed JP Morgan says Ireland is not another Iceland, which claims that:

The country remains "remarkably strong," and the Irish government has been able to raise tens of billions in new debt at prices far lower than the CDS spreads would imply. That should mean that Ireland can bail out its banks.

The article also points out that, even in a worst case scenario, Irish banks would have to write off no more than 26.9bn Euros over the coming years (which is relatively modest compared to the write offs at many other western banks).

http://www.businessinsider.com/jp-morgan-says-ireland-is-not-another-iceland-2009-3

melbury

Just wondered, has the run on Irish banks slowed to a trickle now? Seems to have all gone very quiet lately. Is no news good news?

Midnight_Cowboy_2

melbury wrote: »

Just wondered, has the run on Irish banks slowed to a trickle now? Seems to have all gone very quiet lately. Is no news good news?

Definitely! I was musing today on the irony of it all going quiet the second I had retrieved my money! But it all does seem to have quietened down this week...

Gwhiz

melbury wrote: »

Just wondered, has the run on Irish banks slowed to a trickle now? Seems to have all gone very quiet lately. Is no news good news?

Melbury - please go and see a counselor for your anxiety

cepheus

Are savings safe with Irish banks?


http://www.thisismoney.co.uk/saving-and-banking/article.html?in_article_id=480476&in_page_id=7&ct=5

melbury

Gwhiz wrote: »

Melbury - please go and see a counselor for your anxiety

I know and on top of this I am having a really stressful time at work which doesn't help and that latest post:eek:

Lugh_Chronain

Quote from ThisIsMoney:

Our advice at the moment is that these savers take up the matter with their MPs. They should ask their MPs, urgently, to question the Treasury as to what contingencies are in place to protect savings in the event of an Irish default. That way the Treasury will, hopefully, produce some reassurance – or at least shed some clarity on the matter of where savers stand. Then savers will be in a better place to make a decision.

You may also want to consider writing to a Lord who has taken an interest in this matter such as Lord Oakeshott of Seagrove Bay.

Write to your MP

And Lord Oakeshott of Seagrove Bay

SouthCoast

Financial Mail has repeatedly questioned the UK Treasury, the Financial Services Authority and the FSCS on this subject but they do not appear to have any contingency in place, or at least will not answer questions on the matter.

The Financial Mail should contact a poster on this thread as they have better connections.

JamesJames101 wrote: »

Just spoken to Irish Treasury. Firstly Irish debt is 24% of GDP which is one of the lowest in Europe. This is expected to increase to 35/40% - ie almost as much as the UK government. This is thought to be recent behind jump in cost of insuring against Irish default. Ireland therefore has no problems in issuing bonds to cover its debt obligations. Apparently debt needs to be 70/80% of GDP before this could happen.

I pointed out that deposits at banks are about 200% of GDP - he replied that the banks' assets would not disappear and these could be used to pay back monies.

Pressing more, if the debts got so big that Ireland was not able to find buyers for its bonds, then historically the IMF has stepped in (Argentina). He said that he couldn't say what would happen in the Eurozone countries - but they would take it very seriously and so it is possible that they would help. As has never happened, and no-one even sees it as a possibility (except the media) then there are no protocols in place to cover this.

He finished by saying that Ireland will still be around at the end of the year (my bond expires in November).

It will be interesting though to see what happens when the guarantee expires in 2010 - I would have thought that they will have to extend the time zone unless global economy has started to recover by then.