Ireland 2009 Recapitalization Program for Financial Institutions

Steven Kelly

Journal of Financial Crises, 2021, vol. 3, issue 3, 194-209

Abstract: At the November 2008 height of the Global Financial Crisis, Ireland's Department of Finance announced a willingness to inject capital into the six largest banks. This announcement followed the issuance of a blanket guarantee of those banks' liabilities in September 2008. After broadly designing the potential investments in 2008, the Irish government came to agreements with Bank of Ireland and Allied Irish Banks in February 2009 to inject EUR3.5 billion ($4.5 billion) in each bank in exchange for preferred equity stakes. The government funded the investments from the funds of the National Pensions Reserve Fund, something it would secure the authority to do only in March, after the initial announcements of the recapitalization plan. This set of injections would prove to be only the first step in a multiyear recapitalization and restructuring process, eventually pushing the sovereign to a financial rescue from the International Monetary Fund and European Union.

Keywords: Allied Irish Banks; Bank of Ireland; broad-based; broad-based capital injection; capital injection; Global Financial Crisis; Ireland; National Pensions Reserve Fund (search for similar items in EconPapers)
JEL-codes: G01 G28 (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations:

Downloads: (external link)
https://elischolar.library.yale.edu/cgi/viewconten ... -of-financial-crises (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ysm:ypfsfc:331212

Access Statistics for this article

More articles in Journal of Financial Crises from Yale Program on Financial Stability (YPFS) Contact information at EDIRC.
Bibliographic data for series maintained by ().