Crisis at AIB caused by 'special loans' to property developers.Global Banking News-31 March 2010-Crisis at AIB caused by 'special loans' to property developers(C)2010 ENPublishing - http://www.enpublishing.co.uk Global Banking News - 31 March 2010(c)2005 - Electronic News Publishing - http://www.enpublishing.co.uk Authorities have said that the financial crisis at Allied Irish Banks Allied Irish Banks, p.l.c. (AIB) (Irish: Bainc-Aontas Éireann),ISEQ: ALBK, LSE: ALBK, NYSE: AIB, FWB: AIB is a commercial bank based in Ireland not to be mistaken for Anglo Irish Bank. AIB is one of the so called Big Four commercial banks in Ireland. (AIB) and other main banks in Ireland Ireland, Irish Eire (âr`ə) [to it are related the poetic Erin and perhaps the Latin Hibernia], island, 32,598 sq mi (84,429 sq km), second largest of the British Isles. was due to special loan arrangements that banks provided to property developers. During the real estate boom, banks had extended special privileges to property developers that turned toxic, sparking a crisis at major financial institutions. It is believed that AIB even set up six major lending groups that were wholly independent from its high street operations to provide loans to property developers. It has now been revealed that the value of these loans was far greater than what Irish authorities had first imagined. The crisis had forced AIB to transfer more than EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 19bn to the National Assets Management Agency, a bad bank set by the government to absorb toxic assets from banks. At the end of 2008, AIB had EUR47bn of construction and property loans. [Editorial queries for this story should be sent to gbn@enpublishing.co.uk] ((Distributed via M2 Communications - http://www.m2.com)) |
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