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Greek crisis to lift banks

Irish banks may benefit from the financial crisis in Greece as a weaker euro could stimulate export activity and eventually lead to a decline in payment defaults.

Analysts at Royal Bank of Canada (RBC) said that Irish banks were in a "vegetative state".

It noted that ECB rate hikes may be brought forward, which would lead to an increase in net interest.

The EU has said that it will endorse Greece's plan to cut its huge budget deficit to below the EU's cap of 3pc of Gross Domestic Product in 2012 from last year's anticipated 12.7pc.