While the US engages in some rather filthy political point scoring the Republic of Ireland government has quietly launched its own rescue plan for Irish banks. Whether you agree with the politics of intervention or not, there’s no denying that the Irish are all action. There’s no fuss, no mouthing off, just action.
The guarantee lasts until September 2010 and covers Allied Irish Banks plc, Bank of Ireland plc, Anglo Irish Bank Corp. plc, Irish Life and Permanent plc, Irish Nationwide Building Society, the Educational Building Society and ”such specific subsidiaries as may be approved by government,” the ministry said.
The guarantee is being provided at a charge to the banks and is subject to ”specific terms and conditions so that the taxpayers’ interest can be protected,” the ministry said.
The guarantee covers up to €400bn – more than twice the country’s gross domestic purpose.
The Irish economy has been having a pretty tough time lately so the move is not surprising. Given their corporation tax rate of just 12.5% the Irish have already shown willing to compete for business on an international stage and on a grand scale.