The Ireland government has decided to wind down the country’s two of the biggest troubled lenders and the republic’s debt management agency said it will soon start the auction process of deposits and assets of Anglo Irish Bank and the Irish Nationwide Building Society.
The Irish government had submitted a restructuring plan of the two state-owned lenders to the European Commission last week and proposed the merger of the two.
Anglo Irish Bank has created record in Ireland by booking losses of €17.6 billion (£14.9 billion) for 2010 and it broke its own earlier record loss of €12.7 billion.
The Irish government had to rescue a few of the country’s lenders after the property market slumped during the global property meltdown.
The government itself was forced to seek bailout package later from IMF/EU and had accepted the preconditions of restructuring its banks before the €85 billion rescue package was approved.
The country’s high court has now given the go-ahead for the proposed restructuring plans.
“The NTMA (National Treasury Management Agency) will immediately commence an auction process to invite interested, fully-licensed financial institutions to tender for Anglo and INBS deposits”, the Irish debt management agency said.
“It is intended that this process will conclude as quickly as possible” it added stating “The process will also involve the amalgamation of Anglo (Irish Bank) and INBS into a merged entity regulated by the Central Bank of Ireland”.
Dispelling customer fears of their money, Irish Nationwide chief executive Gerry McGinn said: “Customer deposits remain fully secure, our branch network remains open and customers should continue to transact as normal”.