The Sunday Business Post reports that
Meanwhile, the British government has told its main financial institutions to adopt a sympathetic approach to Irish property developers and not to pursue them aggressively through the courts, under an informal accord reached between the Irish and British governments.
In return, the Department of Finance has briefed Irish institutions covered by the bank guarantee scheme not to pursue British developers on their overseas loan books. A number of Irish banks have significant interests in British commercial property.
The move is designed to give both governments room to deal with the collapse of the property market and the financial sector fallout. In Ireland, it is designed to assist operation of the National Assets Management Agency (Nama).
It sounds like the governments are working together in an attempt to maintain excessive property & land prices. Is this really in our best interests?
No bio, some books worth reading – The Rational Optimist: How Prosperity Evolves – Matt Ridley .
Crisis Economics: A Crash Course in the Future of Finance -Nouriel Roubini, Stephen Mihm