Bank restructuring statement in weeks

THE GOVERNMENT will issue a comprehensive statement on the restructuring of the banking system in coming weeks, Taoiseach Brian Cowen said yesterday.

Mr Cowen said the intention of the restructuring would be to ensure Irish banks “will at least then be able to access funds from the wholesale money markets” having presented the money markets with a clear picture of their losses on property portfolios.

He said the Government would be making “a very comprehensive statement on the kind of restructuring which will have to take place to send the necessary message both at home and abroad – but particularly abroad – to the wholesale money markets on what the state of play is in the Irish banking system”.

Addressing a seminar organised by Bray Chamber in Co Wicklow, Mr Cowen said the biggest issue for Irish business was access to working capital, and “there is no doubt that restructuring of the Irish banking system is a prerequisite for that to happen”.

He told his audience of local business people that the Government was conducting “a very thorough review of the local authority system”. He forecast this would result in additional “value-for-money” measures which would prevent local authorities returning to businesses for extra funding.

He believed it was “unfair” rent reviews had resulted in demands for large amounts of money from businesses, and noted the changes being made by the Minister for Justice in rent reviews.