The authorities of Ireland have decided on the restructuring of Anglo Irish Bank

The authorities of Ireland have decided to restructure one of the largest credit and financial institutions in the country - Anglo Irish Bank Corp. Itar-Tass Radio Corporation BBC. Thus, the Government hopes to end a costly operation to remove from the crisis of the nationalized bank, which in 2008 became the victim of a sharp collapse in the Irish property market.

As reported in the Irish Finance Ministry, businesses Anglo Irish Bank will be split between two new banks. In one of them will be transferred all deposits and deposits from customers. Their safety is guaranteed by the Government. The second bank will retain the license and will focus on the management of existing problem loans, which the official Dublin "inherited" when taken over management of the credit institution. New money loans for both banks to be prohibited.

About a week ago, Anglo Irish Bank has announced a record for the country's corporate loss of $ 8.3 billion euros in the first half. The decision to restructure followed a Cabinet meeting that discussed the plight of the bank, has already received 23 billion euros of state aid to stay afloat. The current step is taken to reduce the nervousness in the markets and improve the reputation of the financial system. The bank with distressed loans can now be sold or closed gradually.

This solution enables the country to avoid a hurried version of the elimination of a major bank. As previously warned the Irish Prime Minister Brian Cowen, in the latter case, the solution of problems Anglo Irish Bank would cost taxpayers up to 70 billion euros, as its assets, if getting rid of them would occur by way of a reduced price would not cover the debt. The Government has announced that the final cost of bank restructuring will be released by October.