Investors fear insolvency bill's effect on banks – NCB
Published 21/11/2012 | 05:00
INVESTORS are worried about the forthcoming personal insolvency bill's effects on Irish banks, NCB Stockbrokers said in a report on the Irish economy.
The bill, which is not yet complete, "repeatedly come(s) up as a key topic in recent discussions we have had with investors," NCB economist Philip O'Sullivan said in a note on the economy published yesterday.
The troika has ordered the Government to reform the present insolvency system which dates back to the 19th century and is so harsh that it is rarely used in practice.
Just 87 people have been made bankrupt in Ireland between 2008 and 2011. The Government is divided on the issue and has broken previous troika deadlines.
NCB said the new legislation is likely to have the biggest effect on Irish banks but highlighted the banks' "relatively low exposure to unsecured consumer debt".