Good and bad PTSB loans to be split26/04/2012 - 15:50:43
Finance Minister Michael Noonan has said new plans are in place to split up the good and bad loans in Permanent TSB (PTSB).
The loan book of the bank is to be split up - with the bad loans wound down and the good loans remaining in in a healthier, smaller bank.
Mr Noonan also said Ireland would re-enter the bond markets this summer, but he warned the government forecast for economic growth would have to be downgraded.
However, he said there would be no need for the government to bring in additional revenue raising measures.
"There is absolutely nothing on the horizon which would suggest that we will require any kind of mini-budget or anything like that," he said.
On the PTSB plans, Fianna Fáil said government plans to restructure the bank should include lower mortgage interest rates for its customers.
Fianna Fáil's finance spokesman Michael McGrath said the restructuring provided an opportunity to help the bank's mortgage customers.
"There's a great opportunity now to secure a reduction in the standard variable interest rate being charged by Permanent TSB, which is about 5.19%," he said. "They are fleecing their variable rate customers."
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