Fears over future of Central Bank as emergency lending takes a toll
Published 01/02/2011 | 05:00
FIRST our banks went bust, then our sovereign went bust, now some are speculating that our Central Bank could round off the grim trilogy.
New figures out later today are likely to show that the Central Bank of Ireland (CBI) has well over €50bn of cash tied up in our battered banks through emergency lending.
The scale of the injection has sent eyebrows shooting up, since even small percentage losses on a portfolio that big could wipe out the CBI's capital and reserves of just €1.5bn.