Ireland’s decision to secure a rescue package from the European Union and International Monetary Fund will likely place surviving Irish banks under foreign ownership, according to Michael Casey, a former chief economist at Ireland’s central bank and an IMF executive board member.
“The promise to downsize and restructure our banks is, of course, desirable in its own right, but it will also be of major benefit to the ECB [European Central Bank]. The more assets our institutions can sell off, the less borrowing (from the ECB) will be needed. That also explains why the National Asset Management Agency (Nama) will have to take another [euro]16 billion of property-related assets from the major banks,” Casey writes in The Irish Times.
Casey estimates that some 80 percent of “corporate Ireland” will be foreign-owned as a result of the rescue package.