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Ireland Update: Stress Tests, New ECB Liquidity Facility, and ... bondholder haircuts?

By Anonymous

The next round of Irish bank stress test results are due on March 31st. Meanwhile the ECB is seeking a new liquidity facility and Ireland is talking haircuts for senior bondholders ...

? From Bloomberg: Ireland Seeks to Share Bank-Loss Burdens With Bond Holders, Noonan Says

Ireland wants to share bank losses with senior bondholders as part of a ?final solution? for the country?s debt-laden financial system, Agriculture Minister Simon Coveney said.

Finance Minister Michael Noonan will seek agreement from European authorities to share losses with bond holders after stress-test results on March 31 determine how much extra capital the banks need, Coveney said.

? From the Financial Times: Ireland seeks ECB deal to secure banks
? From the WSJ: ECB Seeks New Liquidity Plan for Irish Banks

the Sunday Business Post newspaper reported over the weekend that the tests will expose a capital shortfall of ?18 billion to ?23 billion. That is more than the ?10 billion earmarked by the European Union, International Monetary Fund and European Central Bank in Ireland's November bailout deal, but less than the ?35 billion many analysts had estimated the banks would require.

Yesterday and Today:
? Here is the Summary for Week ending March 25th.
? Lawler: Census 2010 and Excess Vacant Housing Units
? Schedule for Week of March 27th

Full post as published by Calculated Risk on March 28, 2011 (boomark / email).