“If a company can not pay its interest..”

One of Mick’s picks for his Blog Rush ealier today, Simon at Irish Election, noted that

THE IRISH Financial Services Regulatory Authority has instructed accountants PricewaterhouseCoopers (PwC) to assess the extent to which the banks are delaying the collection of interest payments on loans to builders and property developers.

If banks are not collecting interest on loans it is pretty clear that with the current state of finance they consider that there is no money to collect. If a company can not pay its interest it will probably go bust dumping a massive bad debt on to the banks balance sheet (and the tax payers laps).

Meanwhile, property development company Taggart Holdings have gone into administration. And a familiar name appears in the report..

PricewaterhouseCoopers have been appointed as the administration of the Belfast-based firm at the request of Ulster Bank and the Bank of Ireland.

I did suggest we might need an administrative genius..