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Message from banks is 'prepare for worst'

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Tom Hanks in the 1986 Hollywood movie The Money Pit. Disaster strikes when a young couple
buy their dream home, and, after moving in, discover serious problems. Despite sinking a fortune into saving the house, the
problems get worse and worse and swallow up ever increasing chunks of their money

Tom Hanks in the 1986 Hollywood movie The Money Pit. Disaster strikes when a young couple buy their dream home, and, after moving in, discover serious problems. Despite sinking a fortune into saving the house, the problems get worse and worse and swallow up ever increasing chunks of their money

Tom Hanks in the 1986 Hollywood movie The Money Pit. Disaster strikes when a young couple buy their dream home, and, after moving in, discover serious problems. Despite sinking a fortune into saving the house, the problems get worse and worse and swallow up ever increasing chunks of their money

Two statements from Bank of Ireland on Friday underscored the crisis that continues to engulf Ireland's banking system. The first came in court, where the bank was trying to pursue unpaid loans from a developer.

According to its barrister, the bank had valued two parcels of land, one in Kildare that had been worth €17.5m at the peak of the property market and one in Athlone that had scaled the dizzy heights of €31m. Today the Kildare land is worth €4m and the Athlone land just €600,000, the bank said. Even Judge Peter Kelly, who has seen it all in the Commercial Court, was shocked, saying that his experience suggested that land prices had fallen by only 70-80 per cent.


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