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Ireland Update: Stress Tests, New ECB Liquidity Facility, and … bondholder haircuts?

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The next round of Irish bank stress test results are due on March 31st. Meanwhile the ECB is seeking a new liquidity facility and Ireland is talking haircuts for senior bondholders …

• From Bloomberg: Ireland Seeks to Share Bank-Loss Burdens With Bond Holders, Noonan Says

Ireland wants to share bank losses with senior bondholders as part of a “final solution” for the country’s debt-laden financial system, Agriculture Minister Simon Coveney said.

Finance Minister Michael Noonan will seek agreement from European authorities to share losses with bond holders after stress-test results on March 31 determine how much extra capital the banks need, Coveney said.

• From the Financial Times: Ireland seeks ECB deal to secure banks
• From the WSJ: ECB Seeks New Liquidity Plan for Irish Banks

the Sunday Business Post newspaper reported over the weekend that the tests will expose a capital shortfall of €18 billion to €23 billion. That is more than the €10 billion earmarked by the European Union, International Monetary Fund and European Central Bank in Ireland’s November bailout deal, but less than the €35 billion many analysts had estimated the banks would require.

Yesterday and Today:
• Here is the Summary for Week ending March 25th.
• Lawler: Census 2010 and Excess Vacant Housing Units
• Schedule for Week of March 27th

Calculated Risk

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