Thursday, December 9, 2010

How Ireland's boom became bust

January 15, 2009: Anglo-Irish Bank is nationalised amid scandals over lending and fears over a failing loan book.

February 11: A €7bn bank recapitalisation programme is announced, with the Government taking preference shares in Allied Irish Banks and Bank of Ireland.

February 24: The Government vows to bring to justice those who risked the country's economic security after the fraud squad raided the headquarters of Anglo.

March 3: Taoiseach Brian Cowen announces a supplementary Budget to raise more revenue and cut spending.

April 7: The Government unveils an emergency Budget, doubling income and health levies and announcing controversial "bad bank" the National Asset Management Agency (Nama).

December 9: Finance Minister Brian Lenihan unveils €4bn in cuts and tax hikes in Budget 2010, with the minister claiming the economy had turned a corner.

January 29, 2010: Ireland's Central Bank predicts the country's economy will turn the corner by the summer.

June 9: A damning report by Central Bank Governor Professor Patrick Honohan and experts Klaus Regling and Max Watson states the banking meltdown was a result of "home-made" decisions rather than the global economic crisis.

September 20: Prof Honohan warns that more than the expected €3bn of cuts maybe needed in the Budget.

November 4: The Government reveals it will impose a €6bn cost-cutting Budget for 2011 - twice the initial estimate.

November 12: Mr Cowen denies Ireland has approached Europe for emergency funds amid reports of behind-the-scenes talks.

November 14: Two senior Cabinet ministers dismiss suggestions of a bail-out, with one branding them fiction.

November 18: Prof Honohan says he expects the country to get a loan worth tens of billions through an International Monetary Fund-European Union rescue deal.

November 21: The Government confirms it will seek an IMF/EU bail-out.

November 22: The Greens, junior partner in the coalition, call for a General Election. The Taoiseach says he will dissolve the Dail after laws are passed to enact Budget 2011.

November 24: A four-year €15bn plan to restore the crippled finances is unveiled.

November 28: The Government announces an €85bn IMF/EU bail-out.

December 7: Parliament to vote on austerity budget.


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