170-728: Anglo Irish Bank was an Irish bank headquartered in Dublin from 1964 to 2011. It began to wind down after nationalisation in 2009. In July 2011 Anglo Irish merged with the Irish Nationwide Building Society , forming a new company named the Irish Bank Resolution Corporation . Michael Noonan , the Minister for Finance stated that the name change was important in order to remove "the negative international references associated with
340-601: A Draft NAMA Business Plan . Within the Supplementary Data Document there is data on the financial ratios of the six covered banks. Adding up the Tier 1 capital of the six covered institutions, as reported in the Supplemental Data document leads to total Tier 1 capital of €29bn. This compares to combined risk-weighted-assets of €363bn, and a Tier 1 capital ratio of 7.9%. Basel II recommends
510-610: A temperate oceanic climate , temperatures are seldom lower than −5 °C (23 °F) in winter or higher than 26 °C (79 °F) in summer. The highest temperature recorded in Ireland was 33.3 °C (91.9 °F) on 26 June 1887 at Kilkenny Castle in Kilkenny, while the lowest temperature recorded was −19.1 °C (−2.4 °F) at Markree Castle in Sligo. Rainfall is more prevalent during winter months and less so during
680-467: A Regional Assembly composed of members delegated by the various county and city councils in the region. The regions do not have any direct administrative role as such, but they serve for planning, coordination and statistical purposes. Ireland has a common law legal system with a written constitution that provides for a parliamentary democracy . The court system consists of the Supreme Court ,
850-701: A ban on borrowing to fund current spending. This policy began in 1989–1992 by the Fianna Fáil/ Progressive Democrats government, and continued by the subsequent Fianna Fáil/ Labour government and Fine Gael /Labour/ Democratic Left government. Ireland became one of the world's fastest growing economies by the late 1990s in what was known as the Celtic Tiger period, which lasted until the Great Recession . Since 2014, Ireland has experienced increased economic activity. In
1020-485: A better economic solution to the banking crisis and was preferable to nationalising the banks. The assets were to be purchased by using government bonds , which led to a significant increase in Ireland's gross national debt . The Bill provided for NAMA to be established on a statutory basis as a separate body corporate with its own Board appointed by the Minister for Finance and with management services provided by
1190-627: A bill to the Supreme Court for a judgment on its constitutionality. Michael D. Higgins became the ninth President of Ireland on 11 November 2011. The Taoiseach (Prime Minister) serves as the head of government and is appointed by the President upon the nomination of the Dáil . Most Taoisigh have served as the leader of the political party that gains the most seats in national elections. It has become customary for coalitions to form
1360-469: A company, Houghton Mifflin Harcourt was a highly leveraged operation and had very significant banking commitments. I understand that the remaining US business is to be transferred to its bond holders. However, it appears that its Irish equity investors will lose all of their investment as a result of this failure. This will have repercussions for Anglo Irish Bank, and possibly other Irish banks, and therefore
1530-404: A day. The sunniest months are May and June, which average between 5 and 6.5 hours per day over most of the country. The extreme southeast gets most sunshine, averaging over 7 hours a day in early summer. December is the dullest month, with an average daily sunshine ranging from about 1 hour in the north to almost 2 hours in the extreme southeast. The sunniest summer in the 100 years from 1881 to 1980
1700-552: A government agency – the nationalization of a private company by fiat. The Quinn group has taken action to counter the moves by the Financial Regulator including the mobilisation of its employees into street protests. The Group furthermore has rejected press speculation that the Group needs €700m of financing. Instead the Group estimates that a cash injection of between €100m and €150m is required. refusing to speculate on
1870-543: A government, as there has not been a single-party government since 1989. The Dáil has 160 members ( Teachtaí Dála ) elected to represent multi-seat constituencies under the system of proportional representation by means of the single transferable vote . The Seanad is composed of sixty members, with eleven nominated by the Taoiseach , six elected by two university constituencies , and 43 elected by public representatives from panels of candidates established on
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#17327759063922040-682: A hotel investment fund. The outcome is pending. On 13 January 2009, opposition party TD George Lee highlighted the potential exposure of the Irish taxpayer to the failure of Education Media and Publishing Group, the holding company of Houghton Mifflin Harcourt , given loans by Anglo Irish Bank to investors in EMPG . George Lee, TD for Dublin South, told journalists that EMPG, the parent company for US publisher Houghton Mifflin Harcourt , has failed with equity investors likely to be wiped out. The Irish taxpayer
2210-493: A letter dated 16 October 2009, Eurostat gave a preliminary view. The letter stated that NAMA is to be treated as part of the government sector, the type of assets to be purchased cannot be expanded without the approval of the European Commission , that it be a temporary scheme and that the size of potential losses be small relative to the total liabilities. Eurostat noted that the Minister for Finance will examine at
2380-434: A liquidity crisis due, in part, to their lack of suitable collateral for European Central Bank repo loans . Along with their capital requirement problems, this is limiting the banks' ability to offer credit to their customers and, in turn, contributing to the lack of growth in the Irish economy. The National Asset Management Agency Bill, in its current format, applies to the six financial institutions which were covered by
2550-473: A location for funding of banking operations," said Mr Cowen. He previously said that the Government's objective in restructuring the banks through NAMA was to "generate more access to credit for Irish business at this critical time". In September 2009, Lenihan expressed a similar view, saying it would lead to more lending for business and households. Cowen was responding to reports published on 8 February that
2720-587: A loss. On Thursday 17 September 2009, the day after the estimated cost of NAMA was announced, shares in AIB and Bank of Ireland rose in value. On the ISEQ Index, shares in AIB rose by 30% and shares in Bank of Ireland rose by 17%. Shares for both banks were also up on the U.S. stock markets. Based on the information presented in the Supplementary Data Document , if the €68bn book value was transferred at €54bn to NAMA,
2890-543: A member of NATO's Partnership for Peace (PfP) program and NATO's Euro-Atlantic Partnership Council (EAPC), which is aimed at creating trust between NATO and other states in Europe and the former Soviet Union. Ireland is a neutral country , and has "triple-lock" rules governing the participation of Irish troops in conflict zones, whereby approval must be given by the UN, the Dáil and Government. Accordingly, its military role
3060-486: A minimum ratio of 4% capital requirement . According to the Supplementary Data Document , the long-term-economic value of the loans transferred to NAMA was 15% higher than the market value. NAMA applied statutory adjustment factors to estimate the valuation of €54bn. The document also noted that asset prices would need to increase from current market values by 10%, for the government and taxpayers to avoid any loss, taking into account subordinated debt. The difference between
3230-550: A net surplus of €4bn. And as of September 2021, NAMA had delivered a total surplus of €2.75bn to the Department of Finance, and projected that its final net surplus would be €4.65bn. As a result of the collapse of the Irish property market, Irish banks have property development loan assets secured on property with a market value significantly below the amount owed. Many loans are now non-performing due to debtors experiencing acute financial difficulties. Both factors have led to
3400-608: A new period of strong economic growth. The Irish name for Ireland is Éire , deriving from Ériu , a goddess in Irish mythology. The state created in 1922, comprising 26 of the 32 counties of Ireland , was "styled and known as the Irish Free State" ( Saorstát Éireann ). The Constitution of Ireland , adopted in 1937, says that "the name of the State is Éire , or, in the English language, Ireland". Section 2 of
3570-448: A policy of military neutrality through non-alignment since before World War II , and the country is consequently not a member of NATO , although it is a member of Partnership for Peace and certain aspects of PESCO . Ireland's economy is advanced, with one of Europe's major financial hubs being centred on Dublin. It ranks among the top five wealthiest countries in the world in terms of both GDP and GNI per capita. After joining
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#17327759063923740-482: A promissory note for €8.3 billion on 31 March 2010, bringing the government's investment in Anglo Irish bank to €12.3 billion. Since then the notes have risen in value to cover €30.6 billion of the €34.7 billion cost of Anglo Irish Bank and Irish Nationwide Bank (€25.3 billion of the €29.3 billion cost of Anglo and €5.3 billion of INBS's €5.4 billion cost). In his statement to
3910-601: A ratio of 2.2%. However, this analysis looks at the aggregate data provided in the Supplemental Data Document . For a clearer picture, NAMA would need to give a breakdown of the loans to be transferred, by institution, as well as the book value and market value of each. Some additional information was provided on 13 October 2009 in the Draft NAMA Business Plan , indicates that the six covered institutions have taken €7bn of provisions in
4080-636: A resolution to the uncertainty created by the appointment of provisional administrators to Quinn Insurance. On 15 April 2010, the Irish Times reported that Quinn Insurance decided not to fight the appointment of a permanent administrator. Republic of Ireland – in Europe (light green & dark grey) – in the European Union (light green) Ireland ( Irish : Éire [ˈeːɾʲə] ), also known as
4250-620: A separate "funding bank" holding deposits. On 5 September 2008, a few months before being nationalized, Anglo Irish sold its Anglo Irish Bank Austria (AIBA) division to Valartis Bank . A Transfer Order was made by the High Court in Dublin under the Credit Institutions (Stabilisation) Act 2010 transferring the assets and liabilities of Irish Nationwide Building Society ("INBS") to Anglo Irish Bank Corporation Limited ("Anglo" or
4420-444: A sharp drop in the value of these loan assets. If the banks were to recognise the true value of these loans on their balance sheets, they would no longer meet their statutory capital requirements . The banks, therefore, need to raise further capital; however, given the uncertainty around the true value of their assets, their stock is in too little demand for a general share issuance to be a viable option. The banks are also suffering
4590-619: A ship and a special unit of frogmen . The military includes the Reserve Defence Forces ( Army Reserve and Naval Service Reserve ) for part-time reservists. Ireland's special forces include the Army Ranger Wing , which trains and operates with international special operations units. The President is the formal Supreme Commander of the Defence Forces, but in practice these Forces answer to the Government via
4760-418: A significant corporate borrower of the Group. The Group is closely monitoring the situation and assessing the potential implications of this development which may have a negative impact on impairment charges in 2010." On 4 April 2010, The Times described the lending practices at Anglo Irish Bank and how these led to the nationalisation of the bank. The article quotes the new CEO, Mike Aynsley: "hubris played
4930-406: A two-part payment system. In his speech to the Dáil on 16 September 2009, the Minister of Finance Brian Lenihan indicated that alternatives to NAMA that did not use long-term economic value would lead to the need for fresh equity to be injected by the government into the financial sector of between €4 and 7 billion. Coincidentally, the upper end of this figures is equal to the difference between
5100-581: A very, very big part." In many deals, Anglo Irish Bank would lend to wealthy individuals to further their equity participation. According to the CEO of Ireland's the National Asset Management Agency (NAMA), loan-to-value on deals was as high as 100%. As a result, the bank was totally exposed to any decline in value. In many cases, Anglo took personal guarantees as security. However, NAMA attaches no value to these personal guarantees. Of
5270-456: A vocational basis. The government is constitutionally limited to fifteen members. No more than two members can be selected from the Seanad , and the Taoiseach , Tánaiste (deputy prime minister) and Minister for Finance must be members of the Dáil . The Dáil must be dissolved within five years of its first meeting following the previous election, and a general election for members of
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5440-720: Is part of the United Kingdom . It is otherwise surrounded by the Atlantic Ocean , with the Celtic Sea to the south, St George's Channel to the south-east and the Irish Sea to the east. It is a unitary , parliamentary republic . The legislature, the Oireachtas , consists of a lower house , Dáil Éireann ; an upper house , Seanad Éireann ; and an elected president ( Uachtarán ) who serves as
5610-579: Is a developed country with a quality of life that ranks amongst the highest in the world; after adjustments for inequality , the 2021 Human Development Index listing ranked it the sixth-highest in the world. It also ranks highly in healthcare , economic freedom and freedom of the press . It is a member of the EU and a founding member of the Council of Europe and the OECD . The Irish government has followed
5780-505: Is appointed by the Government. Most uniformed members do not routinely carry firearms . Standard policing is traditionally carried out by uniformed officers equipped only with a baton and pepper spray . The Military Police is the corps of the Irish Army responsible for the provision of policing service personnel and providing a military police presence to forces while on exercise and deployment. In wartime, additional tasks include
5950-589: Is limited to national self-defence and participation in United Nations peacekeeping . The Irish Defence Forces ( Óglaigh na hÉireann ) are made up of the Army , Naval Service , Air Corps and Reserve Defence Force . It is small but well equipped, with almost 10,000 full-time military personnel and over 2,000 in reserve. Daily deployments of the Defence Forces cover aid to civil power operations, protection and patrol of Irish territorial waters and EEZ by
6120-506: Is that the loans are temporary; they have bought other loans at a discount (see below); will be repaid on property sales; and are subject to continuous review. They are similar in function to bridging loans . The purpose of NAMA's quasi-independent legal status is to remove its debts from general Irish government debt. This is the position of the government, the International Monetary Fund and Eurostat . But, as
6290-492: Is that, as chief economist of the World Bank, we see this type of thing happening in banana republics all over the world. Whenever a banking crisis happens, the financial sector uses the turmoil as a mechanism to transfer wealth from the general population to themselves. I've been very disappointed to see that it has happened, not only in banana republics, but in advanced industrialised countries." On 21 October 2009, ahead of
6460-499: Is the official residence of the President of Ireland, while the houses of the Oireachtas meet at Leinster House in Dublin . The President serves as head of state , is elected for a seven-year term, and may be re-elected once. The President is primarily a figurehead , but is entrusted with certain constitutional powers with the advice of the Council of State . The office has absolute discretion in some areas, such as referring
6630-586: Is the largest contributor of assets to Ireland's "bad bank", the National Asset Management Agency . It expects to transfer loans with a nominal value of €35.6 billion to NAMA over 2010 which would see the risk-weighted-assets fall to €43 billion. In Anglo Irish Bank's 2009 Annual Report, referring to the QUINN group and related companies, it stated that the "High Court in Ireland appointed two joint provisional administrators to
6800-584: The Irish Times , investors of Davy Stockbrokers had US$ 475 million of equity in EMPG. The article did not identify how much or any of this investment was backed by Anglo Irish Bank loans. According to the Irish Independent , Barry O'Callaghan is a large personal customer of Anglo Irish Bank. The Irish Independent article noted that former Anglo Irish Bank Chairman, Sean FitzPatrick is one of
6970-662: The British government and the five Irish treaty delegates, led by Arthur Griffith , Robert Barton and Michael Collins , negotiated the Anglo-Irish Treaty in London from 11 October to 6 December 1921. The Irish delegates set up headquarters at Hans Place in Knightsbridge , and it was here in private discussions that the decision was taken on 5 December to recommend the treaty to Dáil Éireann. On 7 January 1922,
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7140-523: The Central Bank of Ireland was of the view that the practices surrounding these loans were not appropriate. As a result, we continued to monitor and investigate this and as part of this process we advised Anglo-Irish Bank to ensure that these loans are reported in the annual accounts for 2008." The Financial Regulator resigned in January 2009 under pressure to do so. In February 2009, Gardaí from
7310-694: The Court of Appeal , the High Court , the Circuit Court and the District Court , all of which apply the Irish law and hear both civil and criminal matters. Trials for serious offences must usually be held before a jury . The High Court, Court of Appeal and the Supreme Court have authority, by means of judicial review , to determine the compatibility of laws and activities of other institutions of
7480-741: The Crown of Ireland Act 1542 was repealed in Ireland by the Statute Law Revision (Pre-Union Irish Statutes) Act 1962 . Ireland became a member of the United Nations in December 1955, after having been denied membership because of its neutral stance during the Second World War and not supporting the Allied cause . At the time, joining the UN involved a commitment to using force to deter aggression by one state against another if
7650-524: The Irish Republican Army (IRA) split into two opposing camps: a pro-treaty IRA and an anti-treaty IRA . The pro-treaty IRA disbanded and joined the new National Army . However, because the anti-treaty IRA lacked an effective command structure and because of the pro-treaty forces' defensive tactics throughout the war, Michael Collins and his pro-treaty forces were able to build up an army with many tens of thousands of World War I veterans from
7820-421: The Irish property bubble . NAMA functions as a bad bank , acquiring property development loans from Irish banks in return for government purple debts bonds , ostensibly with a view to improving the availability of credit in the Irish economy . The original book value of these loans was €77 billion (comprising €68bn for the original loans and €9bn rolled up interest), and the original asset values to which
7990-611: The Isle of Man and the Channel Islands . However, some identification is required at airports and seaports. The Local Government (Ireland) Act 1898 was the founding statute of the present system of local government, while the Twentieth Amendment to the constitution of 1999 provided for its constitutional recognition. The twenty-six traditional counties of Ireland are the basis of the local government areas, with
8160-541: The Minister for Defence . In 2017, Ireland signed the United Nations Treaty on the Prohibition of Nuclear Weapons . National Asset Management Agency The National Asset Management Agency ( NAMA ; Irish : Gníomhaireacht Náisiúnta um Bhainistíocht Sócmhainní ) is a body created by the government of Ireland in late 2009 in response to the Irish financial crisis and the deflation of
8330-641: The National Treasury Management Agency . The Bill envisaged that NAMA would arrange and supervise the identification and valuation of property-backed loans on the books of qualifying financial institutions in Ireland, but would delegate the purchase and management of these loans to a separately created Special Purpose Vehicle (SPV). In a letter from the Central Statistics Office of Ireland (CSO) to Eurostat, dated 22 September 2009, details are provided on
8500-468: The Republic of Ireland ( Poblacht na hÉireann ), is a country in north-western Europe consisting of 26 of the 32 counties of the island of Ireland , with a population of about 5.4 million. The capital and largest city is Dublin , on the eastern side of the island, with a population of about 1.5 million. The sovereign state shares its only land border with Northern Ireland , which
8670-520: The Republic of Ireland Act 1948 states, "It is hereby declared that the description of the State shall be the Republic of Ireland." The 1948 Act does not name the state "Republic of Ireland", because to have done so would have put it in conflict with the Constitution. The government of the United Kingdom used the name "Eire" (without the diacritic ) and, from 1949, "Republic of Ireland", for
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#17327759063928840-644: The Second Dáil ratified the Treaty by 64 votes to 57. In accordance with the treaty, on 6 December 1922 the entire island of Ireland became a self-governing Dominion called the Irish Free State ( Saorstát Éireann ). Under the Constitution of the Irish Free State , the Parliament of Northern Ireland had the option to leave the Irish Free State one month later and return to the United Kingdom. During
9010-411: The Ulster Unionist Party , unionists became strongly militant, forming Ulster Volunteers in order to oppose "the Coercion of Ulster". After the Home Rule Bill passed parliament in May 1914, to avoid rebellion with Ulster, the British Prime Minister H. H. Asquith introduced an Amending Bill reluctantly conceded to by the Irish Party leadership. This provided for the temporary exclusion of Ulster from
9180-462: The World Bank , speaking at Trinity College Dublin criticised NAMA. He said, "Countries which allow banks to go under by following the ordinary rules of capitalism have done fine. The US has let 100 banks go this year alone, as did Sweden and Norway in their crises." As well as commenting that in Ireland, "this bank bailout is a simple transfer from taxpayers to bondholders, and it will saddle generations to come. The only thing that might give you solace
9350-454: The covered institutions below), the international rating agencies consider NAMA's debts to be a part of Irish government debt. Besides, NAMA's directors on the SPV board "will maintain a veto over all decisions of the Board that could affect the interests of NAMA or of the Irish government." Following the acquisition of Allied Irish Banks by the Irish government the SPV stakeholding was sold to South African investor Prestige. In April 2012,
9520-473: The "Bank") on 1 July 2011. This achieves the legal merger of the INBS business into Anglo consistent with directions provided to both entities by the Minister for Finance, in consultation with the European Commission. On 31 March 2010, Anglo Irish Bank reported results for the 15 months to December 2009. Loss for the period were €12.7 billion, with an operating profit before impairment of €2.4 billion and an impairment charges of €15.1 billion driving
9690-416: The "IMF (Mr Seelig) do not believe that Nama will result in significant increase in bank lending in Ireland". The Government has maintained that NAMA's purchase of bad loans from the banks with State bonds would increase the flow of credit in the economy since the plan was unveiled April 2009. Speaking at the publication of the NAMA legislation in September 2009, Mr Lenihan said it would "strengthen and improve"
9860-405: The 15 months to December 2009. Losses for the period were €12.7 billion, with an operating profit before impairment of €2.4 billion and an impairment charges of €15.1 billion driving the overall result. It is the largest loss in Irish corporate history. Total assets declined to €85.2 billion at the end of 2009 from €101.3 billion in September 2008. The European Commission allowed
10030-414: The 15% uplift to get to €54bn and the need for a 10% uplift for the taxpayer to avoid a loss, was explained in the Draft NAMA Business Plan. This analysis took into account the expected part payment in subordinate debt to the six covered institutions of €2.7bn (circa 5% of the €54bn transfer value). This subordinated debt holders may receive none of the proceeds in a scenario where the taxpayers are exposed to
10200-407: The 1922 disbanded Irish regiments of the British Army, capable of overwhelming the anti-treatyists. British supplies of artillery, aircraft, machine-guns and ammunition boosted pro-treaty forces, and the threat of a return of Crown forces to the Free State removed any doubts about the necessity of enforcing the treaty. Lack of public support for the anti-treaty forces (often called the Irregulars) and
10370-418: The 20th century, but the 1980s and 1990s saw the British and Irish governments working with Northern Irish parties to resolve the conflict that had become known as the Troubles . Since the signing of the Good Friday Agreement in 1998, the Irish government and Northern Irish government have co-operated on a number of policy areas under the North/South Ministerial Council created by the Agreement. Ireland
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#173277590639210540-437: The Atlantic Ocean via St George's Channel and the Celtic Sea to the southwest. The western landscape mostly consists of rugged cliffs, hills and mountains. The central lowlands are extensively covered with glacial deposits of clay and sand, as well as significant areas of bogland and several lakes. The highest point is Carrauntoohil (1,038.6 m or 3,407 ft), located in the MacGillycuddy's Reeks mountain range in
10710-421: The Bank the Minister for Finance provided €4 billion in capital between June and September 2009. A liability management exercise was also undertaken in August 2009 and €1.8 billion of equity was realised on the buyback, at a significant discount, of subordinated debt instruments. In December 2009, the Minister committed to safeguard the Bank's regulatory capital position. As a result, the Minister issued of
10880-438: The British Government. In January 1919, after the December 1918 general election , 73 of Ireland's 105 Members of Parliament (MPs) elected were Sinn Féin members who were elected on a platform of abstentionism from the British House of Commons . In January 1919, they set up an Irish parliament called Dáil Éireann . This first Dáil issued a declaration of independence and proclaimed an Irish Republic . The declaration
11050-408: The Bureau of Fraud Investigation raided the offices of Anglo Irish Bank. In Anglo Irish Bank's 2009 Annual Report it lists loans to former directors totalling €155.8 million at the end of December 2009 versus €178.7 million at the end of September 2008. Whereas no provisions for impairment had been taken in September 2008, in the 2009 annual report, an impairment charge of €108.9 million
11220-436: The Constitution defined the national territory to be the whole island, they also confined the state's jurisdiction to the area that had been the Irish Free State. The former Irish Free State government had abolished the Office of Governor-General in December 1936. Although the constitution established the office of President of Ireland , the question over whether Ireland was a republic remained open. Diplomats were accredited to
11390-528: The Davy clients that had invested in EMPG. Based on an analysis of the Irish Independent's "2008 Rich List" and The Sunday Times ' "2009 Rich List", Barry O'Callaghan's personal debts in March 2008 were circa US$ 400 million. On 15 January 2010, O'Callaghan admitted to having multimillion loans from Anglo Irish Bank and other international banks. Refusing to confirm the level of his indebtedness, O'Callaghan claimed to still be solvent and stated that he expects to honour all his obligations. In contrast to
11560-444: The Dáil must take place no later than thirty days after the dissolution. In accordance with the Constitution of Ireland , parliamentary elections must be held at least every seven years, though a lower limit may be set by statute law. The current government is a coalition of Fianna Fáil , Fine Gael , and the Green Party with Simon Harris of Fine Gael as Taoiseach and Micheál Martin of Fianna Fáil as Tánaiste. Opposition parties in
11730-406: The EC, the country's government enacted a series of liberal economic policies that helped to boost economic growth between 1995 and 2007, a time now often referred to as the Celtic Tiger period. A recession and reversal in growth then followed during the Great Recession , which was exacerbated by the bursting of the Irish property bubble . The Great Recession lasted until 2014, and was followed by
11900-410: The Government announced that it would take steps that would enable the Bank to be taken into State ownership. The Anglo Irish Bank Corporation Act, 2009 provided for the transfer of all the shares of the Bank to the Minister for Finance and was enacted under Irish law on 21 January 2009. On the same date, the Bank was re-registered as a private limited company. In order to protect the capital position of
12070-413: The Government's current approach of limited recapitalisation and the introduction of an asset management agency, under four headings. We consider that nationalisation will better protect taxpayers' interests, produce a more efficient and longer lasting solution to our banking problems, be more transparent in relation to pricing of distressed assets, and be far more likely to produce a banking system free from
12240-706: The IMF had told Lenihan in April 2009 that the NAMA would not lead to a significant increase in lending by the banks. The comments, which appear in internal Department of Finance documents released under the Freedom of Information Act, were made by senior IMF official Steven Seelig who joined the board of NAMA in May 2010. Minutes of a private meeting at the department between Brian Lenihan and IMF officials on 29 April 2009 last state that
12410-509: The International Financial Services Summit (IFSS) in Dublin on 5 November 2009, two leading economists expressed caution on NAMA. Professor Nouriel Roubini , Professor at New York University Stern School of Business said that: It is essential that the bad assets are taken off the balance sheets of the financial institutions and that the Government separates the good assets from the bad assets to clean up
12580-657: The Irish Free State shall no longer extend to Northern Ireland." The Irish Free State was a constitutional monarchy sharing a monarch with the United Kingdom and other Dominions of the British Commonwealth . The country had a governor-general (representing the monarch), a bicameral parliament, a cabinet called the "Executive Council", and a prime minister called the President of the Executive Council . The Irish Civil War (June 1922 – May 1923)
12750-625: The Irish Government should have, in principle, gone for a good bank, not a bad bank.... The bad bank is always a bad idea because it means that the Government underwrites all the creditors and creates moral hazard." Other participants at the IFSS include Martin Wolf, Chief Economics Commentator, Financial Times and Philip Lane, Professor of International Macroeconomics at Trinity College Dublin. In February 2010 Brian Cowen defended his claim that
12920-627: The Irish Independent, eight subsidiaries of Quinn Insurance provided guarantees of €1.2bn to cover Quinn Group's debts, prompting the regulator to seek the appointment of provisional administrators in the High Court. In total the Quinn family is estimated to have €2.8 billion of loans from Anglo Irish Bank and the Quinn group has an additional €1.2 billion of loans. Of these circa €780 million need to be re-financed this year. Given
13090-557: The Irish Naval Service, and UN, EU and PfP peace-keeping missions. By 1996, over 40,000 Irish service personnel had served in international UN peacekeeping missions. The Irish Air Corps is the air component of the Defence Forces and operates sixteen fixed wing aircraft and eight helicopters. The Irish Naval Service is Ireland's navy, and operates six patrol ships , and smaller numbers of inflatable boats and training vessels, and has armed boarding parties capable of seizing
13260-537: The Irish Parliament on 30 March 2010, the Minister for Finance stated: "Finding a long-term solution for Anglo Irish Bank is by far the biggest challenge in resolving the banking crisis. The sheer size of the bank means there are no easy or low cost options. Winding-up the bank is not and was never a viable option." In September 2010, the government announced that it would separate the bank into two entities, an "asset recovery bank" to manage existing loans, and
13430-510: The Irish government on 10 August 2010 to temporarily grant €10 billion to Anglo Irish Bank – this included an additional €1.4 billion sought by Ireland to allow the nationalised bank meet its regulatory capital requirements in light of increased costs associated with transferring loans to the National Asset Management Agency . In 2011 the accounts for UK savers were moved to the Allied Irish Bank (GB) . On 15 January 2009,
13600-480: The Irish government's deposit guarantee scheme. Those institutions were Bank of Ireland , Allied Irish Banks , Anglo Irish Bank , EBS , Permanent TSB and Irish Nationwide . Other institutions, such as Ulster Bank , which are not covered, had the option to join the scheme. Ulster Bank eventually decided not to do so; its parent company Royal Bank of Scotland having joined the analogous UK scheme earlier in 2009. Then- Minister for Finance , Brian Lenihan said
13770-744: The Irish taxpayer. This incident adds further weight to Fine Gael's calls for an urgent investigation into the Irish banking crisis. Fuller details of the goings-on within Anglo Irish Bank's risky lending practices are still emerging, and this development with Houghton Mifflin Harcourt sheds further light. However, only a full, forensic investigation into the crisis will ensure that it never happens again. Interviewed on Irish State broadcaster, RTÉ , Barry O'Callaghan , Chairman of EMPG and CEO of Houghton Mifflin Harcourt, confirmed that Irish investors as well as he himself were facing huge losses. He stated that "no-one has lost more than me". According to
13940-473: The Master SPV are entitled to the following economic return: the equity investors will receive an annual dividend linked to the performance of the Master SPV; On winding up of the Master SPV, the equity investors would only be repaid their capital if the Master SPV has the resources; they would receive a further equity bonus of 10% of the capital if the Master SPV makes a profit; All other profits and gains of
14110-524: The Master SPV may be classified as a financial corporation . However, this is a preliminary view and is subject to revision. The three investors owning 51% of the SPV were revealed by the Minister of Finance in April 2010, and in NAMA's June 2010 business plan: Each provided €17m for a total of €51m of NAMA's initial capital of €100m. NAMA then geared up way above typical EU banking limits , taking on debt 35 times its paid-up capital. The reason given for this
14280-404: The Master SPV would accrue to NAMA. Former Finance Minister, the late Brian Lenihan believed that pension funds could be the most appropriate investors in the SPV. The annual dividend, should one be paid, is to be capped at the 10-year Irish Government bond yield at the time the dividend is declared. Lenihan said he was confident that the €51m could be found from suitable investors because of
14450-473: The NAMA would increase the supply of credit into the economy despite the International Monetary Fund (IMF) saying it would not lead to any significant increase. "People should contemplate what level of credit accessibility we'd have in this economy without NAMA," he said. "It's not just sufficient in itself obviously for credit flow, it's certainly an important and necessary part of restructuring our banking system, of that there's no doubt, in terms of improving as
14620-661: The Northern Ireland question, the British and Irish governments started to seek a peaceful resolution to the violent conflict involving many paramilitaries and the British Army in Northern Ireland known as " The Troubles ". A peace settlement for Northern Ireland, known as the Good Friday Agreement , was approved in 1998 in referendums north and south of the border. As part of the peace settlement,
14790-591: The UK, but with strong links to Ireland". The state extends over an area of about five-sixths (70,273 km or 27,133 sq mi) of the island of Ireland (84,421 km or 32,595 sq mi), with Northern Ireland constituting the remainder. The island is bounded to the north and west by the Atlantic Ocean and to the northeast by the North Channel . To the east, the Irish Sea connects to
14960-505: The UK, launched an armed insurrection against British rule in the 1916 Easter Rising , together with the Irish Citizen Army . This commenced on 24 April 1916 with the declaration of independence . After a week of heavy fighting, primarily in Dublin, the surviving rebels were forced to surrender their positions. The majority were imprisoned, with fifteen of the prisoners (including most of the leaders) were executed as traitors to
15130-604: The UK. This included Patrick Pearse , the spokesman for the rising and who provided the signal to the volunteers to start the rising, as well as James Connolly , socialist and founder of the Industrial Workers of the World union and both the Irish and Scottish Labour movements. These events, together with the Conscription Crisis of 1918 , had a profound effect on changing public opinion in Ireland against
15300-784: The UN thought it was necessary. Interest towards membership of the European Communities (EC) developed in Ireland during the 1950s, with consideration also given to membership of the European Free Trade Area . As the United Kingdom intended on EC membership, Ireland applied for membership in July 1961 due to the substantial economic linkages with the United Kingdom. The founding EC members remained sceptical regarding Ireland's economic capacity, neutrality, and unattractive protectionist policy. Many Irish economists and politicians realised that economic policy reform
15470-676: The United Kingdom and United States are also important. It held the Presidency of the Council of the European Union on six occasions, most recently from January to June 2013. Ireland tends towards independence in foreign policy; thus the country is not a member of NATO and has a longstanding policy of military neutrality. This policy has led to the Irish Defence Forces contributing to peace-keeping missions with
15640-750: The United Nations since 1960, including during the Congo Crisis and subsequently in Cyprus , Lebanon and Bosnia and Herzegovina . Despite Irish neutrality during World War II , Ireland had more than 50,000 participants in the war through enlistment in the British armed forces. During the Cold War , Irish military policy, while ostensibly neutral, was biased towards NATO. During the Cuban Missile Crisis , Seán Lemass authorised
15810-628: The appalling failings of both institutions and their previous managements". Anglo Irish mainly dealt in business and commercial banking , and had only a limited retail presence in the major Irish cities. It also had wealth management and treasury divisions. Anglo Irish had operations in Austria, Switzerland, the Isle of Man , the United Kingdom, and the United States. The bank's heavy exposure to property lending, with most of its loan book being to builders and property developers, meant that it
15980-504: The architect of NAMA, both accept that this is a massive gamble. Taxpayers are right to ask why Fianna Fáil is so keen to gamble with their money without asking the banks, bondholders and institutional investors to take their fair share of the pain. In dealing with the banking crisis, the objective must be to minimise the risk to taxpayers and to get credit flowing to businesses and homebuyers. NAMA achieves neither of these objectives. It won't get credit flowing and it exposes taxpayers to all of
16150-572: The assets will not be based on their estimated market value , but on a higher notional "long-term economic value". This higher value is ultimately based on the share prices of Irish banks, which were low in March 2009 but have risen since. Critics say that this is a circular argument ; were the expected discount 50% or more, the banks' share prices would have collapsed. In early September 2009 Minister Lenihan pointed to this rise in share prices as positive news: "... markets have assessed that information in
16320-440: The bank, noting that a further €10 billion may be required at a later stage to cover future losses and ensure an adequate capital base. Since the nationalization of Anglo Irish Bank a number of controversies have arisen over certain business practices and loans, including loans to directors and loans to people associated with Brendan Murtagh, EMPG , and the QUINN group . On 31 March 2010 Anglo Irish Bank reported results for
16490-421: The banks would have to assume significant losses when the loans, largely made to property developers , are removed from their books. If such losses resulted in the banks needing more capital, then the government would insist on taking an equity stake in the lenders. Economist Peter Bacon , who was appointed by the government to advise on solutions to the banking crisis, said the new agency had potential to bring
16660-484: The banks. One year after NAMA's establishment, the Irish government was compelled for other but similar reasons to seek a European Union-International Monetary Fund bailout in November 2010, the outcome of which will have considerable effects on NAMA's future operations. Despite this early criticism, as of year end 2018, NAMA had recovered €37.4bn from its owned assets and projected that it would eventually generate
16830-509: The bill into law on 22 November 2009, despite calls from the Labour Party to seek advice from the Council of State regarding its constitutionality . The assets will be taken on at a discount, referred to as a haircut , estimated at 30% of book value, and in exchange the banks will be given bonds to sell to raise cash. The 30% discount to the €77bn book value outlined by NAMA includes circa €9bn of unpaid interest. The current value of
17000-596: The borrower does not benefit, as he/she must pay the saving to the counter-party of the swap agreement. Given the decline in interest rates over the last 2 years (e.g. the US Federal Funds Rate was 0.25% in late September 2009 versus 5.25% in August 2007), there may be a significant liability relating to the €14.7bn derivative portfolio. The Draft NAMA Business Plan does not elaborate on the magnitude of this liability, however, it states: "These derivatives change
17170-419: The commercial loans. These loans were transferred to NAMA as well. The nominal value of this derivative portfolio was €14.7 billion. Developers and other borrowers in real-estate transactions are often required by lenders to enter into derivative transactions as part of a loan agreement, as a mechanism to fix the interest rate on the loan. Typically, interest rate swap agreements are used. If interest rates fall,
17340-402: The concerns over price levels. In particular, given the debate on domestic competitiveness versus other countries, Ireland may experience real-exchange rate depreciation, which could have a drag effect of nominal property value. He said, "it is important that the NAMA process to recognise the inevitability of such uncertainty in the determining of long-term economic values". As a result, he favours
17510-409: The context of their current share price and rating agencies have used it in their assessment of these institutions." Should an independent NAMA valuation be too low, Lenihan said: "I can give directions to NAMA to have a valuation reconsidered." In addition, critics also pointed out that the use of the term, often capitalised, Long Term Economic Value which was popular in the press around the time of
17680-572: The covered institutions could be a write-down of both their Tier 1 capital and Risk-weighted assets of €14bn in aggregate. Assuming a 1-for-1 write-down of €14bn in the risk weighted assets and the same of the Tier 1 capital, the new ratio would be 4.2% with risk weighted assets of €349bn and Tier 1 capital of €15bn. Assuming the transfer value was at the market-value estimate of €47bn, not €54bn, then Tier 1 capital could fall by €21bn not €14bn. Risk weighted assets could be €342bn and Tier 1 capital €8bn, with
17850-489: The current Dáil are Sinn Féin , the Labour Party , People Before Profit–Solidarity , Social Democrats , Aontú , as well as a number of independents . Ireland has been a member state of the European Union since 1973. Citizens of the United Kingdom can freely enter the country without a passport due to the Common Travel Area , which is a passport-free zone comprising the islands of Ireland, Great Britain,
18020-491: The determination of the government to overcome the Irregulars contributed significantly to their defeat. Following a national plebiscite in July 1937, the new Constitution of Ireland ( Bunreacht na hÉireann ) came into force on 29 December 1937. This replaced the Constitution of the Irish Free State and declared that the name of the state is Éire , or "Ireland" in the English language. While Articles 2 and 3 of
18190-452: The early months of summer. Southwestern areas experience the most rainfall as a result of south westerly winds, while Dublin receives the least. Sunshine duration is highest in the southeast of the country. The far north and west are two of the windiest regions in Europe, with great potential for wind energy generation. Ireland normally gets between 1100 and 1600 hours of sunshine each year, most areas averaging between 3.25 and 3.75 hours
18360-455: The end of 2012 whether NAMA has met its objectives and decide if its continuation is justified. It suggested that a detailed analysis has to be carried out, especially of the guarantee arrangements. It made no judgement on the draft NAMA business plan but stated that the presence of market investors is reassuring to it (those providing 51% of the equity in the SPV). Their preliminary conclusion is that
18530-424: The end of December 2009. Chairman Sean FitzPatrick , CEO David Drumm , and board member Lars Bradshaw resigned in December 2008, following the revelation of a loan scandal. FitzPatrick and Bradshaw had taken out loans in order to purchase Anglo Irish shares. From 2000 to 2008, FitzPatrick transferred the loans to another bank prior to year-end audits, thereby causing "Loans to Directors" to be understated. In 2008,
18700-405: The establishment of NAMA, often as the acronym LTEV , gave the impression that it was a well-known or accepted term in economics. It was pointed out that, in fact, the acronym did not appear on any internet page before 2009, with the full term appearing only shortly before, with the concept of LTEV being invented primarily to give political cover for paying from taxpayers' funds, a price in excess of
18870-466: The extensive clearing of woodland for farming are believed to be the main causes of deforestation . Today, only about 10% of Ireland is woodland, most of which is non-native conifer plantations , and only 2% of which is native woodland. The average woodland cover in European countries is over 33%. According to Coillte , a state-owned forestry business, the country's climate gives Ireland one of
19040-541: The fact that the state would remain part of the British Empire and that members of the Free State Parliament would have to swear what the anti-treaty side saw as an oath of fidelity to the British king. Pro-treaty forces, led by Michael Collins , argued that the treaty gave "not the ultimate freedom that all nations aspire to and develop, but the freedom to achieve it". At the start of the war,
19210-414: The fastest growth rates for forests in Europe. Hedgerows , which are traditionally used to define land boundaries, are an important substitute for woodland habitat, providing refuge for native wild flora and a wide range of insect, bird and mammal species. It is home to two terrestrial ecoregions: Celtic broadleaf forests and North Atlantic moist mixed forests . Agriculture accounts for about 64% of
19380-547: The financial system.... But if it does it in such a way that implies it is buying these assets at overpriced prices that does not reflect the underlying value, then it is giving a big subsidy to the bank shareholders and the unsecured creditors." Professor Willem Buiter , Professor of political economy at the London School of Economics and former member of the UK Monetary Policy Committee, said:
19550-497: The funding positions of the banks "so that they can lend to viable businesses and households". The IMF estimated in their published report the domestic banks would face losses of up to €35 billion, though the department pointed out this would be partly funded from operating profits and provisions already taken against some loan losses. On 16 September 2009, NAMA published Supplementary Data Document that contained high level statistic on NAMA, data on property yields, and information on
19720-811: The hands of landlord-dominated grand juries of the Protestant Ascendancy . Home Rule seemed certain when the Parliament Act 1911 abolished the veto of the House of Lords , and John Redmond secured the Third Home Rule Act in 1914. However, the Unionist movement had been growing since 1886 among Irish Protestants after the introduction of the first home rule bill, fearing discrimination and loss of economic and social privileges if Irish Catholics achieved real political power. In
19890-693: The implementation of the Act at the end of the war through Ireland's engagement in the war , Redmond and the Irish National Volunteers supported the UK and its Allies . 175,000 men joined Irish regiments of the 10th (Irish) and 16th (Irish) divisions of the New British Army , while Unionists joined the 36th (Ulster) divisions. The remainder of the Irish Volunteers , who refused Redmond and opposed any support of
20060-512: The intervening period, the powers of the Parliament of the Irish Free State and Executive Council of the Irish Free State did not extend to Northern Ireland. Northern Ireland exercised its right under the treaty to leave the new Dominion and rejoined the United Kingdom on 8 December 1922. It did so by making an address to the King requesting, "that the powers of the Parliament and Government of
20230-506: The island's population of over 8 million fell by 30%. One million Irish died of starvation and disease and another 1.5 million emigrated, mostly to the United States. This set the pattern of emigration for the century to come, resulting in constant population decline up to the 1960s. From 1874, and particularly under Charles Stewart Parnell from 1880, the Irish Parliamentary Party gained prominence. This
20400-399: The king, but the president exercised all internal functions of a head of state. For instance, the President gave assent to new laws with his own authority, without reference to King George VI who was only an "organ", that was provided for by statute law. Ireland remained neutral during World War II, a period it described as The Emergency . Ireland's Dominion status was terminated with
20570-512: The largely ceremonial head of state , but with some important powers and duties. The head of government is the Taoiseach (prime minister, lit. ' chief ' ), elected by the Dáil and appointed by the president, who appoints other government ministers. The Irish Free State was created with Dominion status in 1922, following the Anglo-Irish Treaty . In 1937, a new constitution
20740-532: The last year against loan impairments and giving the split of the €77bn of prospective loans for transfer to NAMA. However, the data point of the current net book value of the loan portfolios and the prospective transfer price for the portfolios by each of the 6 covered institutions was omitted. In addition to the potential loan book transfer to NAMA, the Draft NAMA Business Plan outlined the existence of over 1,000 derivative positions attached to
20910-697: The late 19th and early 20th-century unionism was particularly strong in parts of Ulster , where industrialisation was more common in contrast to the more agrarian rest of the island, and where the Protestant population was more prominent, with a majority in four counties. Under the leadership of the Dublin-born Sir Edward Carson of the Irish Unionist Party and the Ulsterman Sir James Craig of
21080-474: The loan to FitzPatrick and Bradshaw amounted to €87 million; the transfer resulted in the accounts showing only about €40 million outstanding to directors, instead of €150 million. The Central Bank of Ireland revealed that they became aware of problems surrounding loans from Anglo Irish Bank to FitzPatrick, following an inspection earlier in 2008. The regulator said, "While it does not appear that anything illegal took place in relation to these loans,
21250-432: The loans related was €88bn, with there being an average Loan To Value of 77% and the current market value is estimated at €47 billion. NAMA is controversial, with politicians (who were in opposition at the time of its formation) and some economists criticising the approach, including Nobel Prize-winning economist Joseph Stiglitz who has said that the Irish government is "squandering" public money with its plan to bail out
21420-471: The long-term economic value being a function of both nominal price levels and the real (inflation-adjusted) economic value of property. The real economic value of property is further defined as a function of numerous factors including, but not limited to: real disposable income per capita; the level of long-term interest rates; the size of the population, and; the demographic structure of the population. On implementation of long-term economic value, Lane highlights
21590-482: The magnitude of the loans to Anglo Irish Bank the company was reported to be considering a €700 million financial rescue of the Quinn group . The plan, would see €150 million injected into Quinn Insurance and €550 million would be used to pay off bondholders. Anglo Irish Bank would become the majority shareholder in the Quinn Group. This would be, in effect, a hostile takeover and as it will be done by
21760-480: The majority vote, and by NAMA, which would hold the remaining 49%. The subscribed capital of the Master SPV would be €100m. Although the SPV has its own Board, NAMA retains a veto over all decisions of the Board that could affect the interests of NAMA or of the Irish government. The Master SPV is run with the objective of making a profit on the purchase and management of the assets it purchases. The private investors in
21930-481: The market value of assets. Problems relating to paying the notional long-term economic value (rather than market value) for the loans to be transferred to NAMA were highlighted by the difficulties of Liam Carroll 's Zoe Developments. In July 2009, Zoe Developments, a large property development company, made an application to court seeking the appointment of an examiner . The appointment of an examiner would have allowed it protection from its creditors. Zoe Developments
22100-446: The need for a €550 million payment to bondholders, it noted that a re-financing, if it occurred, would not necessarily increase the overall debt of the Group. On 12 April 2010, the Financial Regulator and Quinn group were due in the High Court. The decision on a permanent appointment of administrators was postponed by one week, following a last minute submission of documents by the Quinn Group. The company pledged to work hard to seek
22270-525: The overall result. Total assets declined to €85.2 billion at the end of 2009 from €101.3 billion in September 2008. With the substantial capital investment in the Bank by the government offsetting the provisions, the Core Tier 1 and total regulatory capital were €5 billion and €8 billion respectively at the end of 2009 versus risk weighted assets of €73 billion. Anglo Irish Bank
22440-488: The passage of The Republic of Ireland Act 1948 , which came into force on 18 April 1949 and declared that the state was a republic. At the time, a declaration of a republic terminated Commonwealth membership. This rule was changed 10 days after Ireland declared itself a republic, with the London Declaration of 28 April 1949. Ireland did not reapply when the rules were altered to permit republics to join. Later,
22610-421: The provision of a traffic control organisation to allow rapid movement of military formations to their mission areas. Other wartime roles include control of prisoners of war and refugees. Ireland's citizenship laws relate to "the island of Ireland", including islands and seas, thereby extending them to Northern Ireland , which is part of the United Kingdom. Therefore, anyone born in Northern Ireland who meets
22780-467: The purchase and management of these loans were the responsibility of the SPV. The SPV has a majority of private equity . It funds the purchase of the loan books from financial institutions by issuing securities, most of which are backed by a guarantee from the Irish Government. According to the details provided to Eurostat, the Master SPV is a separate legal entity and is jointly owned by private investors , who would own 51% of its equity and therefore have
22950-434: The requirements for being an Irish citizen, such as birth on the island of Ireland to an Irish or British citizen parent or a parent who is entitled to live in Northern Ireland or the Republic without restriction on their residency, may exercise an entitlement to Irish citizenship, such as an Irish passport . Foreign relations are substantially influenced by membership of the European Union, although bilateral relations with
23120-470: The risk." Fine Gael instead proposed a 'national recovery bank'. Then- Labour Party Enterprise spokesperson and former Finance Minister Ruairi Quinn accused the Government of "proposing to establish the biggest property company in the world and asking taxpayers to foot the bill and bear all the risk." He stated that "this Bill will be one of the most important pieces of legislation ever to have come before Dáil Éireann. There will be enormous consequences for
23290-614: The search of Cuban and Czechoslovak aircraft passing through Shannon and passed the information to the CIA . Ireland's air facilities were used by the United States military for the delivery of military personnel involved in the 2003 invasion of Iraq through Shannon Airport . The airport had previously been used for the United States invasion of Afghanistan in 2001, as well as the First Gulf War . Since 1999, Ireland has been
23460-502: The similarity of the SPV investment to a government bond . In its analysis, the Central Statistics Office (CSO) requested that NAMA be classified as a Government Entity and the Master SPV as a Financial Institution; the likely impact of this classification could be that the debt issued by the SPV, guaranteed by the Irish government, would not be classified as part of the national debt of Ireland by Eurostat. In
23630-470: The six covered institutions. The supplemental data indicated the book-value of the loans expected to be transferred to NAMA by the six covered institutions (Bank of Ireland, Allied Irish Banks, Anglo Irish Bank, EBS, Permanent TSB, Irish Nationwide) was €68bn. The suggested transfer value was €54bn, with the estimated market value at €47bn. In addition to the supplementary data document, the Department of Finance published incremental data on 13 October 2009 in
23800-696: The southwest. River Shannon , which traverses the central lowlands, is the longest river in Ireland at 386 kilometres or 240 miles in length. The west coast is more rugged than the east, with numerous islands, peninsulas , headlands and bays . Ireland is one of the least forested countries in Europe. Until the end of the Middle Ages , the land was heavily forested. Native species include deciduous trees such as oak , ash , hazel , birch , alder , willow , aspen , elm , rowan and hawthorn , as well as evergreen trees such Scots pine , yew , holly and strawberry trees . The growth of blanket bog and
23970-432: The stakeholding in the SPV belonging to Irish Life Investment Managers was sold on the order of the minister for finance, Michael Noonan, to an undisclosed investor. These sales are necessitated by each nationalisation raising the government's stake from a minority 49 percent to a majority to 66 percent. The National Treasury Management Agency published details on NAMA in a press release dated 8 April 2009. The draft bill
24140-579: The state with the constitution and the law. Except in exceptional circumstances, court hearings must occur in public. The Garda Síochána ( lit. Guardians of the Peace), more commonly referred to as the Gardaí, is the state's civilian police force. The force is responsible for all aspects of civil policing, both in terms of territory and infrastructure. It is headed by the Garda Commissioner, who
24310-466: The state. It was not until the 1998 Good Friday Agreement , when the state dropped its claim to Northern Ireland , that it began calling the state "Ireland". The state is also informally called "the Republic", "Southern Ireland" or "the South"; especially when distinguishing the state from the island or when discussing Northern Ireland ("the North"). Irish republicans reserve the name "Ireland" for
24480-540: The statement of George Lee that Irish taxpayers were exposed, an Anglo Irish Bank spokesperson was reported by the Irish Times to have stated that it did not have a "big exposure" to EMPG. However, the spokesperson did not comment on whether it had exposure to individuals who had exposure to EMPG. On 30 March 2010, following an application by Ireland's Financial Regulator , the High Court appointed joint provisional administrators to Quinn Insurance Limited. According to
24650-461: The suggested creation by NAMA of a Master Special Purpose Vehicle (SPV) known as National Asset Management Ltd and controlled by the holding company National Asset Management Agency Investment Ltd. The CSO sought guidance from Eurostat on how NAMA and the SPV would be classified in national accounts. NAMA arranged and supervised the identification and valuation of property-backed loans on the books of qualifying financial institutions in Ireland, but
24820-445: The support of AIB and Bank of Ireland for such an appointment. Receivers have been appointed after a Supreme Court appeal failed. A deficit of €900m versus loans of €1.2bn if realised would imply a market value of 25% of loan value for Zoe Developments. On 9 September 2009, economist Philip Lane of Trinity College Dublin published a paper on Estimating Long Term Economic Value . Using economic theory and formulae, Lane describes
24990-527: The taxpayer if the government get it wrong." Labour instead has proposed the temporary nationalisation of the banks. A commentary signed by leading academics also questioned the NAMA strategy. They wrote in The Irish Times that they saw ...nationalisation as being the inevitable consequence of a required recapitalisation of the banks done on terms that are fair for the taxpayer. We can summarise our arguments in favour of nationalisation, and against
25160-607: The territorial claim to Northern Ireland in Articles 2 and 3 of the Constitution of Ireland was removed by referendum. In its white paper on Brexit the United Kingdom government reiterated its commitment to the Good Friday Agreement. With regard to Northern Ireland's status, it said that the UK Government's "clearly-stated preference is to retain Northern Ireland's current constitutional position: as part of
25330-430: The then Taoiseach Brian Cowen stated that it was "business as usual" at Anglo Irish Bank, and people should be reassured that the bank is solvent. Between June and September 2009, the Minister for Finance provided €4 billion in capital. In a statement on 30 March 2010, a day before Anglo Irish Bank reported its financial results, the Minister of Finance Brian Lenihan announced an injection of €8.3 billion into
25500-399: The three private investors are bank-run pension fund managers, whose parent or major-shareholder companies had been all but nationalised by 2011, and as the 2010 Credit Institutions (Stabilisation) Act allows the government powers to apply to the courts to restructure any financial body in any way in secret at any time, and as a general guarantee to protect the parent banks remains in place (see
25670-604: The total land area. This has resulted in limited land to preserve natural habitats, in particular for larger wild mammals with greater territorial requirements. The long history of agricultural production coupled with modern agricultural methods, such as pesticide and fertiliser use, has placed pressure on biodiversity . The Atlantic Ocean and the warming influence of the Gulf Stream affect weather patterns in Ireland. Temperatures differ regionally, with central and eastern areas tending to be more extreme. However, due to
25840-514: The toxic reputation that our current financial institutions have deservedly earned. The criticisms were disputed by the Government. Then- Tánaiste and Minister for Enterprise, Trade and Employment Mary Coughlan defended the creation of the agency saying it was not a bailout for the banks, one of the charges made against it. On 7 October 2009, Professor Joseph Stiglitz , winner of the Nobel Prize in economics and former chief economist of
26010-485: The traditional counties of Cork , Dublin and Galway containing two or more local government areas. The Local Government Act 2001 , as amended by the Local Government Reform Act 2014 , provides for a system of thirty-one local authorities – twenty-six county councils, two city and county councils, and three city councils. Counties (with the exception of the three counties in Dublin) are divided into municipal districts . A second local government tier of town councils
26180-404: The whole island and often refer to the state as "the Free State", "the 26 Counties", or "the South of Ireland". This is a "response to the partitionist view [...] that Ireland stops at the border". From the Act of Union on 1 January 1801, until 6 December 1922, the island of Ireland was part of the United Kingdom of Great Britain and Ireland . During the Great Famine , from 1845 to 1849,
26350-417: The workings of the bill for a trial period of six years, with an as yet undecided new set of measures to be introduced for the area to be temporarily excluded. Though it received the Royal Assent and was placed on the statute books in 1914, the implementation of the Third Home Rule Act was suspended until after the First World War which defused the threat of civil war in Ireland. With the hope of ensuring
26520-463: The €36.5 billion of loans not being transferred to NAMA, Anglo Irish Bank has taken a provision of €4.9 billion. The article in The Times notes that Anglo Irish Bank has large exposures to entrepreneurs such as Seán Quinn of Quinn Group and Barry O’Callaghan, of EMPG. In both cases, the bank's security was limited and largely on the men's shares in businesses. The provision of €4.9 billion compares with impaired loans of €9.5 billion at
26690-520: The €54 billion estimated "long-term economic value" and the €47 billion "current market value". Lenihan noted that the additional €4-7 billion would be an incremental investment in the banks rather than a higher payment for the loans. The agency has been the subject of major criticism in both politics and academia. At the time of its establishment, then- Fine Gael Enterprise, Trade and Employment spokesperson, Leo Varadkar , said of NAMA: "( Fianna Fáil and government minister) Willie O'Dea and Peter Bacon,
26860-414: Was 1887, according to measurements made at the Phoenix Park in Dublin; 1980 was the dullest. Ireland is a constitutional republic with a parliamentary system of government. The Oireachtas is the bicameral national parliament composed of the President of Ireland and the two Houses of the Oireachtas: Dáil Éireann (House of Representatives) and Seanad Éireann (Senate). Áras an Uachtaráin
27030-434: Was abolished in 2014. Local authorities are responsible for matters such as planning, local roads, sanitation, and libraries. The breaching of county boundaries should be avoided as far as practicable in drawing Dáil constituencies . Counties with greater populations have multiple constituencies, some of more than one county, but generally do not cross county boundaries. The counties are grouped into three regions , each with
27200-445: Was adopted, in which the state was named "Ireland" and effectively became a republic, with an elected non-executive president . It was officially declared a republic in 1949, following The Republic of Ireland Act 1948 . Ireland became a member of the United Nations in 1955. It joined the European Communities (EC), the predecessor of the European Union (EU), in 1973. The state had no formal relations with Northern Ireland for most of
27370-434: Was badly affected by the downturn in the Irish property market in 2008 . In December 2008, the Irish government announced plans to inject €1.5 billion of capital for a 75% stake in the bank, effectively nationalising it. The Dublin and London Stock Exchanges immediately suspended trading in Anglo Irish's shares, with the final closing share price of €0.22 representing a fall of over 98% from its peak. On 16 January 2009
27540-414: Was estimated to have €1.2bn of loans with a likely deficit of €900m in a liquidation scenario. The €1.2bn of loans included debts of €489m to AIB and €113m to Bank of Ireland. In addition to Zoe Developments, Carroll's overall liabilities, including other businesses are estimated to total €2.8bn. On 10 September 2009, High Court judge Frank Clarke refused to appoint an examiner to Zoe Developments despite
27710-436: Was exposed since Anglo Irish Bank had loans outstanding to the shareholders of EMPG. George Lee commented: It has been reported to me that the education materials company Houghton Mifflin Harcourt has failed, and that a number of Irish equity investors have lost significant sums of money as a result. Many of these investors were funded through large loans from Anglo Irish Bank, which is now wholly owned by Irish taxpayers. As
27880-410: Was firstly through widespread agrarian agitation via the Irish Land League , which won land reforms for tenants in the form of the Irish Land Acts , and secondly through its attempts to achieve Home Rule , via two unsuccessful bills which would have granted Ireland limited national autonomy. These led to "grass-roots" control of national affairs, under the Local Government Act 1898 , that had been in
28050-487: Was held later that year which confirmed Ireland's entry into the bloc, and it finally joined the EC as a member state on 1 January 1973. The economic crisis of the late 1970s was fuelled by the Fianna Fáil government's budget, the abolition of the car tax, excessive borrowing, and global economic instability including the 1979 oil crisis . There were significant policy changes from 1989 onwards, with economic reform, tax cuts, welfare reform, an increase in competition, and
28220-442: Was mainly a restatement of the 1916 Proclamation with the additional provision that Ireland was no longer a part of the United Kingdom. The Irish Republic's Ministry of Dáil Éireann sent a delegation under Ceann Comhairle (Head of Council, or Speaker, of the Daíl) Seán T. O'Kelly to the Paris Peace Conference of 1919, but it was not admitted. After the War of Independence and truce called in July 1921, representatives of
28390-403: Was necessary. The prospect of EC membership became doubtful in 1963 when French President General Charles de Gaulle stated that France opposed Britain's accession, which ceased negotiations with all other candidate countries. In 1969 his successor, Georges Pompidou , was not opposed to British and Irish membership. Negotiations began and in 1972 the Treaty of Accession was signed. A referendum
28560-457: Was published on 30 July 2009 for public consultation. Following the consultation process, the National Asset Management Agency (NAMA) Bill 2009 was published on 10 September 2009. The bill was debated in the Dáil and Seanad , and passed, on 15 October 2009 by 77 votes to 73. The committee stage of the bill started on 22 October 2009. Following the passing of the bill in both houses of the Oireachtas , President Mary McAleese decided to sign
28730-501: Was reported, implying a potential loss of 70% of the value of the loans to former directors. However, the total loans to directors, former directors and "connected persons" was reported to be significantly higher at €255 million in the notes of the annual report. As of November 2009, twenty-one major, Irish investors are suing Anglo and its Delaware subsidiary, Mainland Ventures Corporation, for US$ 23 million due to "fraudulent and/or reckless concealment" perpetrated in regards to
28900-402: Was the consequence of the ratification of the Anglo-Irish Treaty and the creation of the Irish Free State. Anti-treaty forces, led by Éamon de Valera , objected to the fact that acceptance of the treaty abolished the Irish Republic of 1919 to which they had sworn loyalty, arguing in the face of public support for the settlement that the "people have no right to do wrong". They objected most to
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