Cypriot bailout 2.0: Don’t underestimate the impact

by Business Editor David Murphy The revised Cypriot bailout is startling. Not only does it aim to sort out the banking mess, it also intends to extinguish part of the Cypriot economy and replace it with something else; but what? That part is unclear.

What the Cypriot chaos means for Ireland

by Business Editor David Murphy On the surface, the Cyprus bailout may have seemed relatively straightforward. The island originally requested aid in 2011, and it was intended to be a small rescue. Yet the Cypriot aftershock now risks undoing all the progress made to date to calm nerves about the entire euro zone crisis. While it may not damage Ireland, it could make the process of fixing the Irish banking system more difficult.

Elderfield produces the big stick

by Business Editor David Murphy The Central Bank’s deputy governor Matthew Elderfield appears to be strong-arming the banks into cutting deals with some over stretched borrowers. The lenders don’t want to admit that is what is happening, but judging from comments by lobby group New Beginning it seems to be the case. The main issue is whether Mr Elderfield has gone far enough.

Repo Man

  By Seán Whelan Economics Correspondent With all the comment – some bordering on the hysterical – about Department of Finance boss John Moran’s  answers to questions on mortgage repossessions at the Public Accounts Committee last week, I thought it might be worth posting up the transcript.  This is the official version (that’s why it refers to Judge Elizabeth Dunne as Mr Justice Dunne). Just for comparison, according to the UK Department of Justice, in the last quarter of 2012, …

Pressing times for Irish newspapers

By David Murphy, Business Editor The unusual deal to save the newspapers and radio stations forming part of the Irish Examiner group shines a light into the core of the troubled newspaper industry. Most revealing were the figures at the Sunday Business Post, now in examinership. The newspaper had revenue of €15.6m in 2007, but by last year it had collapsed to €7.4m. Weekly circulation dropped from 53,000 in 2007 to 39,000 in 2012. Its problems are not unique. Irish …

Caps and Capital Requirements

By Sean Whelan, Economics Correspondent In the usual way of Brussels stories, a local political win has hogged the headlines, obscuring another story of great consequence. Yesterday’s nod of approval by the ECOFIN council for the Troika to look at an optimal way for Ireland and Portugal to re-profile some of their official lending was not the main item on the agenda.

The Government’s role in the mortgage problem

By David Murphy, Business Editor The nightmare of mortgage arrears is perhaps the most urgent problem facing Ireland. Central Bank Governor Patrick Honohan has accused banks of making slow progress on the issue and has, in particular, told the financial institutions to begin repossessing buy-to-let properties from delinquent borrowers. Ministers too, are happy to wag their fingers at the bankers. However Jim Brown, the Chief Executive of Ulster Bank, has pointed out that both the Central Bank and the Government …