ECB borrowings rise in November

Irish-based lenders' borrowings from the European Central Bank rose to €102.9 billion last month, new figures showed today.

The Central Bank figures showed a rise at the end of November from €100.9 billion the previous month.

"Other assets" at the bank, which include exceptional liquidity assistance lending to banks, totalled €45.7 billion at the end of last month, compared with €47.7 billion in the previous month.

The Central Bank also said Bank of Ireland increased its exposure to the Government's sovereign debt by €1.44 billion in the first nine months of the year.

The bank's net Irish sovereign holdings on its available-for-sale book rose to €4.57 billion during the period, according to figures prepared as part of European Banking Authority stress tests.

"The increases are consistent with the widely-reported reinvestment of some of the capital the government injected into the banks this year," via contingent capital bonds, said Stephen Lyons, a fixed-income analyst at
Dublin-based securities firm Davy.

The banks issued so-called co-co bonds to the State in return for cash injected as part of the recapitalisation of the financial system.

Additional reporting: Bloomberg