BoI investment a sign of confidence in its future
THE agreement that a group of private investors will inject capital of €1.1bn into the Bank of Ireland will not, in itself, restore the prospects of the Irish economy. But it does provide us with a glimmer of confidence, if no more, and that glimmer is very good news indeed.
For three years, we have watched with dismay the collapse of our banking system. We have watched the seemingly endless and purposeless transfusions of public money. We can barely grasp the prodigious cost of the operation to everybody in the country.
Now at last we can see some still-faint evidence of a reversal of the process. A substantial investment from the private sector will mean that the bank is no longer totally dependent on state funding. It will probably be many years before it can achieve anything more than semi-independence, but that is better than nothing.