Article: Ireland: Ireland s EU54 Billion Gamble on Banks, Property Nears Approval.

Byline: kusumv03

The biggest financial gamble in modern Irish history is about to exit the realms of theory and enter the real world. Lawmakers will today pass a bill creating a so-called bad bank that will pay the country s biggest banks 54 billion euros ($81 billion), or about a third of gross domestic product, for property loans to free up lending. The agency plans to start buying loans by the end of the year, according to a plan published last month.

Finance Minister Brian Lenihan is seeking to end a crisis that s wiped 70 percent from the country s benchmark stock index, sent bond spreads soaring to the highest in at least a decade and destroyed ...

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