The Irish government announced the appointment of Goldman Sachs in an advisory position. The appointment followed a competition among a group of banks to advise the Irish government on the best way to recoup its investment and bring in much needed capital for Ireland.
“Given the significant progress made by A.I.B. in 2014 and the expectations for 2015, my officials are engaged in discussions with the bank’s management team to explore how best to reconfigure the bank’s capital structure to make it fit for purpose and agree on a road map that will see the bank begin to return cash to the state,” Michael Noonan, Ireland’s finance minister, said in a statement
AIB was the biggest bank in Ireland when the financial crisis struck between 2008 and 2010, the bank’s investments in property caused the collapse of the bank along with many other financial institutions. The Irish government kept the bank afloat by purchasing almost all of it using €21 billion of taxpayer money. It is hoped that the move will end up encouraging lending among the banks who are being superseded by independent short-term loans companis, such as this site.
Noonan wrote in the Irish Times, “However, the cost the taxpayer has incurred to secure this has been unprecedented. Maximizing the banks’ value and ultimately the return of cash to the taxpayer is a key priority in 2015.”
“Over the past two years we have taken major steps in reducing the overall cost of this bailout. The liquidation of Anglo Irish Bank and the replacement of the promissory note deal in February 2013 reduced the amount of money that the State will have to borrow over the next decade by some €20 billion,” Noonan continued.
Although the economy of Ireland has seen a significant upswing in the last year, the current state of economic and political situations through Europe can affect the stability and growth of Ireland’s economy. Reducing the heavy debt that Ireland is currently carrying will signify an improvement in the economic status of the country.