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Irish bank shares higher over $85B bailout plan

Irish bank shares higher over $85B bailout plan

November 29th, 2010 in News

DUBLIN (AP) - Shares in Ireland's banks are rising as investors support the EU-IMF rescue loan for Ireland, particularly its immediate focus on injecting 10 billion ($13 billion) into the cash-strapped banks.

Shares in Allied Irish Banks are up 9 percent, Bank of Ireland 19 percent and Irish Life & Permanent 20 percent as investors say the cash crisis in Dublin's banks has been eased.

The lead IMF negotiator, Ajai Chopra, says he believes Ireland may not need to use the full loan facility and will return to normal borrowing once interest rates being demanded on bond markets fall below the fund's own average rate of 5.8 percent.

Chopra says the plan's requirement for Ireland to commit 17.5 billion of its own cash and pension reserves is "a sign of strength."