Cable Viewer

Currently released so far... 12476 / 251,287

### Browse latest releases

2010/11 2010/12 2011/01 2011/02 2011/03 2011/04 2011/05
2010/11/28 2010/11/29 2010/11/30
2010/12/01 2010/12/02 2010/12/03 2010/12/04 2010/12/05 2010/12/06 2010/12/07 2010/12/08 2010/12/09 2010/12/10 2010/12/11 2010/12/12 2010/12/13 2010/12/14 2010/12/15 2010/12/16 2010/12/17 2010/12/18 2010/12/19 2010/12/20 2010/12/21 2010/12/22 2010/12/23 2010/12/24 2010/12/25 2010/12/26 2010/12/27 2010/12/28 2010/12/29 2010/12/30
2011/01/01 2011/01/02 2011/01/04 2011/01/05 2011/01/07 2011/01/09 2011/01/10 2011/01/11 2011/01/12 2011/01/13 2011/01/14 2011/01/15 2011/01/16 2011/01/17 2011/01/18 2011/01/19 2011/01/20 2011/01/21 2011/01/22 2011/01/23 2011/01/24 2011/01/25 2011/01/26 2011/01/27 2011/01/28 2011/01/29 2011/01/30 2011/01/31
2011/02/01 2011/02/02 2011/02/03 2011/02/04 2011/02/05 2011/02/06 2011/02/07 2011/02/08 2011/02/09 2011/02/10 2011/02/11 2011/02/12 2011/02/13 2011/02/14 2011/02/15 2011/02/16 2011/02/17 2011/02/18 2011/02/19 2011/02/20 2011/02/21 2011/02/22 2011/02/23 2011/02/24 2011/02/25 2011/02/26 2011/02/27 2011/02/28
2011/03/01 2011/03/02 2011/03/03 2011/03/04 2011/03/05 2011/03/06 2011/03/07 2011/03/08 2011/03/09 2011/03/10 2011/03/11 2011/03/13 2011/03/14 2011/03/15 2011/03/16 2011/03/17 2011/03/18 2011/03/19 2011/03/20 2011/03/21 2011/03/22 2011/03/23 2011/03/24 2011/03/25 2011/03/26 2011/03/27 2011/03/28 2011/03/29 2011/03/30 2011/03/31
2011/04/01 2011/04/02 2011/04/03 2011/04/04 2011/04/05 2011/04/06 2011/04/07 2011/04/08 2011/04/09 2011/04/10 2011/04/11 2011/04/12 2011/04/13 2011/04/14 2011/04/15 2011/04/16 2011/04/17 2011/04/18 2011/04/19 2011/04/20 2011/04/21 2011/04/22 2011/04/23 2011/04/24 2011/04/25 2011/04/26 2011/04/27 2011/04/28 2011/04/29 2011/04/30
2011/05/01 2011/05/02 2011/05/03 2011/05/04 2011/05/05 2011/05/06 2011/05/07

### Browse by creation date

66 72 73 75 79 85 86 87 88 89 90 91 92 93 96 97 00 01 02 03 04 05 06 07 08 09 10
1966/12
1972/02 1972/08
1973/04
1975/03
1979/08
1985/03 1985/06
1986/05
1987/06
1988/01
1989/12
1990/01 1990/07 1990/08 1990/10
1991/05
1992/01 1992/06 1992/12
1993/10
1996/11
1997/12
2000/05 2000/06 2000/09 2000/11
2001/02 2001/03 2001/06 2001/07 2001/09 2001/10 2001/11
2002/01 2002/02 2002/03 2002/04 2002/07 2002/08 2002/09 2002/11
2003/01 2003/02 2003/03 2003/04 2003/05 2003/06 2003/07 2003/08 2003/09 2003/10 2003/11 2003/12
2004/01 2004/02 2004/03 2004/04 2004/05 2004/06 2004/07 2004/08 2004/09 2004/10 2004/11 2004/12
2005/01 2005/02 2005/03 2005/04 2005/05 2005/06 2005/07 2005/08 2005/09 2005/10 2005/11 2005/12
2006/01 2006/02 2006/03 2006/04 2006/05 2006/06 2006/07 2006/08 2006/09 2006/10 2006/11 2006/12
2007/01 2007/02 2007/03 2007/04 2007/05 2007/06 2007/07 2007/08 2007/09 2007/10 2007/11 2007/12
2008/01 2008/02 2008/03 2008/04 2008/05 2008/06 2008/07 2008/08 2008/09 2008/10 2008/11 2008/12
2009/01 2009/02 2009/03 2009/04 2009/05 2009/06 2009/07 2009/08 2009/09 2009/10 2009/11 2009/12
2010/01 2010/02

### Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z
Embassy Athens Embassy Asuncion Embassy Astana Embassy Asmara Embassy Ashgabat Embassy Apia Embassy Ankara Embassy Amman Embassy Algiers Embassy Addis Ababa Embassy Accra Embassy Abuja Embassy Abu Dhabi Embassy Abidjan Consulate Auckland Consulate Amsterdam Consulate Adana American Institute Taiwan, Taipei
Embassy Bujumbura Embassy Buenos Aires Embassy Budapest Embassy Bucharest Embassy Brussels Embassy Bridgetown Embassy Bratislava Embassy Brasilia Embassy Bogota Embassy Bishkek Embassy Bern Embassy Berlin Embassy Belmopan Embassy Belgrade Embassy Beirut Embassy Beijing Embassy Banjul Embassy Bangkok Embassy Bandar Seri Begawan Embassy Bamako Embassy Baku Embassy Baghdad Consulate Barcelona
Embassy Copenhagen Embassy Conakry Embassy Colombo Embassy Chisinau Embassy Caracas Embassy Canberra Embassy Cairo Consulate Curacao Consulate Ciudad Juarez Consulate Chennai Consulate Casablanca Consulate Cape Town Consulate Calgary
Embassy Dushanbe Embassy Dublin Embassy Doha Embassy Djibouti Embassy Dili Embassy Dhaka Embassy Dar Es Salaam Embassy Damascus Embassy Dakar Consulate Dubai
Embassy Freetown Consulate Fukuoka
Embassy Guatemala Embassy Gaborone Consulate Guayaquil Consulate Guadalajara
Embassy Helsinki Embassy Harare Embassy Hanoi Consulate Ho Chi Minh City Consulate Hermosillo Consulate Hamilton Consulate Hamburg Consulate Halifax
Iran RPO Dubai Embassy Islamabad Consulate Istanbul
Embassy Jakarta Consulate Jerusalem Consulate Jeddah
Embassy Kyiv Embassy Kuwait Embassy Kuala Lumpur Embassy Kinshasa Embassy Kingston Embassy Kigali Embassy Khartoum Embassy Kathmandu Embassy Kampala Embassy Kabul Consulate Kolkata
Embassy Luxembourg Embassy Luanda Embassy London Embassy Ljubljana Embassy Lisbon Embassy Lima Embassy Lilongwe Embassy La Paz Consulate Lahore Consulate Lagos
Mission USOSCE Mission USNATO Mission UNESCO Embassy Muscat Embassy Moscow Embassy Montevideo Embassy Monrovia Embassy Minsk Embassy Mexico Embassy Mbabane Embassy Maputo Embassy Manila Embassy Manama Embassy Managua Embassy Malabo Embassy Madrid Consulate Munich Consulate Mumbai Consulate Montreal Consulate Monterrey Consulate Milan Consulate Melbourne
Embassy Nicosia Embassy Niamey Embassy New Delhi Embassy Ndjamena Embassy Nassau Embassy Nairobi Consulate Naples Consulate Naha
Embassy Ouagadougou Embassy Ottawa Embassy Oslo
Embassy Pristina Embassy Pretoria Embassy Prague Embassy Port Of Spain Embassy Port Louis Embassy Port Au Prince Embassy Phnom Penh Embassy Paris Embassy Paramaribo Embassy Panama Consulate Peshawar
Embassy Quito Consulate Quebec
REO Basrah Embassy Rome Embassy Riyadh Embassy Riga Embassy Reykjavik Embassy Rangoon Embassy Rabat Consulate Rio De Janeiro Consulate Recife
Secretary of State Embassy Suva Embassy Stockholm Embassy Sofia Embassy Skopje Embassy Singapore Embassy Seoul Embassy Sarajevo Embassy Santo Domingo Embassy Santiago Embassy Sanaa Embassy San Salvador Embassy San Jose Consulate Strasbourg Consulate St Petersburg Consulate Shenyang Consulate Shanghai Consulate Sapporo Consulate Sao Paulo
Embassy Tunis Embassy Tripoli Embassy Tokyo Embassy The Hague Embassy Tel Aviv Embassy Tehran Embassy Tegucigalpa Embassy Tbilisi Embassy Tashkent Embassy Tallinn Consulate Toronto Consulate Tijuana
USUN New York USEU Brussels US Office Almaty US Mission Geneva US Interests Section Havana US Delegation, Secretary UNVIE Embassy Ulaanbaatar
Embassy Vilnius Embassy Vienna Embassy Vatican Embassy Valletta Consulate Vladivostok Consulate Vancouver
Embassy Windhoek Embassy Wellington Embassy Warsaw
Embassy Yerevan Embassy Yaounde
Embassy Zagreb

### Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ASEC AF AFIN AM AJ AG AS AEMR AMGT AORC APER AU ACBAQ AFGHANISTAN AR AE ADANA ADPM APECO AMED AX AL ADCO AA AECL AADP AMEX ACAO ANET AODE ASCH AY APEC AID AORG ASEAN ABUD AGAO AFSI AFSN AINF AGR AROC AO AFFAIRS ASIG ABLD ASUP AND ARM AQ ATFN AC ATRN ACOA AMBASSADOR AUC ASEX ARF APCS AER AVERY AGRICULTURE AMG AORL AGMT ALOW AFU ASECKFRDCVISKIRFPHUMSMIGEG AZ AN AMCHAMS AIT ADM ACABQ ACS
BR BK BA BRUSSELS BEXP BM BD BL BO BU BILAT BN BT BX BTIO BIDEN BG BE BP BY BBSR BC BTIU BWC BB BF BH BMGT
CO CASC CS CA CONDOLEEZZA CE CVIS CU CPAS CMGT COUNTER CH COUNTRY CJAN CG CIDA CJUS CI CY CD CDG CBSA CEUDA CR CM CLMT CAC CBW CODEL COPUOS CIC CW CBE CHR CFED CT CONS CWC CIA CTM CDC CVR CF CLINTON COUNTERTERRORISM CITEL CLEARANCE COE CN CACS CAN CB CSW CITT CARSON CACM CDB COM CROS CV CAPC CKGR CBC CTR CNARC CARICOM CL CICTE CIS
DR DHS DA DJ DEA DPRK DEPT DOMESTIC DOE DS DE DEFENSE DO DAO DCM DEAX DK DTRA DISENGAGEMENT DOD
EINV ETRD ECON EPET ENRG EAGR EC EFIN EAID ELTN EIND ELAB EAIR ECIN EUN EG EU ETTC ET EI EWWT EFIS EMIN ER EPA ENVI ENGR ETRC EXTERNAL ECPS EN ELN EINT ETRDEINVTINTCS ES EZ ETRO ETRDEINVECINPGOVCS EDU ETRN EFTA EAIG EK EUREM ECONCS ECONOMICS ENVR ELECTIONS EAP ENIV ECONOMY ESA EINN ECONOMIC EIAR EXBS ECA ECUN EINDETRD EUR EREL EUC ESENV ECONEFIN ECIP ENERG EFIM EAIDS ETRDECONWTOCS EUNCH EINVETC EURN EINVEFIN ETC ENGY EINVECONSENVCSJA EUMEM ETRA ERD ENNP ECINECONCS EFINECONCS EEPET EXIM ERNG
FR FREEDOM FTA FJ FARC FI FTAA FAC FBI FOREIGN FOI FM FAO FAS FINR FDA FOR FINANCE FMLN FO FISO
GTMO GG GM GV GOV GOI GL GAERC GH GA GY GT GR GF GCC GE GZ GTIP GERARD GLOBAL GANGS GAZA
HO HA HR HUMAN HK HU HILLARY HI HSTC HURI HYMPSK HUMOR HEBRON
IR IAEA IS IZ IN IT IO IAHRC ID IC IRAQI IWC ISLAMISTS IV ICAO INDO ITPHUM ITPGOV ITALIAN IPR ICRC INTERPOL IQ IBET IMO INR INTERNAL ICJ ICTY IRS ILO INRA INRO ISRAELI IEA INRB ITALY IL ITU ITRA IBRD IIP ILC IZPREL IMF IRAJ IA IDP ITF IF INMARSAT INTELSAT IGAD ISRAEL ICTR IEFIN IRC IACI IDA
JA JO JUS JP JOSEPH JM JAMES JOHNNIE JOHN
KS KN KTFN KTDB KTIP KIRF KPAO KDEM KCOR KE KMPI KSCA KZ KG KNUP KNNP KPAL KCRM KIPR KPKO KFLO KSEP KOMC KISL KNNPMNUC KWBG KFRD KUNR KWMN KSTC KFLU KOLY KMDR KJUS KSTH KAWC KU KWAC KNPP KERG KSEO KACT KHLS KGHG KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KCRCM KDRG KTIA KVPR KV KIDE KICC KPRP KBIO KSUM KGIT KCFE KBTS KCIP KGIC KPAI KTLA KTEX KFSC KPLS KHIV KCSY KSAC KTRD KID KMRS KOM KSAF KRVC KR KMOC KNAR KHDP KSPR KFIN KBTR KOCI KJUST KNEI KAWK KGCC KMCA KBCT KREL KMFO KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KFTFN KVRP KIRC KCOM KO KLIG KAID KNSD KHUM KSEC KRAD KCMR KPWR KCHG KICA KPIN KESS KDEV KCGC KWWMN KPRV KPAK KWNM KWMNCS KRFD KVIR KSCI KPOA KDDG KWMM KCFC KTER KREC KIFR KCRS KHSA KRGY KMIG KTBT KOMS KX KRCM KRIM KPAONZ KNUC KDEMAF
LE LY LG LH LI LTTE LAB LOG LA LT LO LU LABOR
MP MY MOPS MCAP MARR MNUC MUCN MTCRE MASS MAPP MIL MX MEDIA MO MPOS MU ML MA MERCOSUR MG MD MW MK MAS MT MI MOPPS MASC MR MTS MLS MILI MAR MTRE MEPN MTCR MEPI MQADHAFI MAPS MARAD MEETINGS MEPP MZ MILITARY MDC MC MV MCC MRCRE MASSMNUC MIK
NU NZ NATO NPT NL NI NAFTA NDP NIPP NP NPA NG NRR NO NEW NE NH NR NA NS NSF NZUS NATIONAL NSG NC NT NAR NK NV NORAD NASA NSSP NW NATOPREL NPG NGO NSC NSFO
OVIP OPIC OEXC OTRA OPDC OREP OAS OPRC OIIP OSCE OFFICIALS OMIG ODIP OFDP OECD OBSP OPCW OTR OSAC OSCI ON OCII OES OVP OPAD OFDA OIE OIC OHUM OCS
PGOV PINR PREL PHSA PTER PE PREF PHUM PK PARM PINS PM PL PO PA PBTS PBIO POL PARMS PROG PAK POLITICS PORG PTBS PNAT PUNE POLICY PDOV PCI PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PBT PP PS PG PY PTERE PGOF PALESTINIAN PKFK PSOE PEPR PPA PINT PMAR PRELP PSEPC PREFA PGOVE PINF PNG PMIL PGOC PFOR PCUL PLN PROP PAO POLINT PGGV PHALANAGE PARTY PGOVLO PHUS PDEM PECON PROV PAS PHUMPREL PGIV PRAM PF PRL PHUH PHUMBA POV PSA PHUMPGOV POGOV PEL PNR PREO PAHO PSI PINL PU PRGOV PAIGH POLITICAL PARTIES POSTS
QA
RS RCMP RICE RU REACTION REPORT REGION RIGHTS RO RW RF RM RFE RSP RP RIGHTSPOLMIL ROBERT ROOD RELATIONS RUPREL RSO
SOCI SN SY SNAR SENV SP SZ SCUL SA SO SW SMIG SU SENVKGHG SR SYRIA SF SI SC SWE SARS STEINBERG SG SIPRS ST SL SPCE SNARIZ SSA SK SPCVIS SOFA SEVN SIPDIS SAN SYR SHUM SANC SNARCS SAARC SNARN SHI SH SEN SCRS
TU TPHY TI TX TSPL TRGY TBIO TF TERRORISM TH TIP TC TO TSPA TW TZ TNGD TT TL TV TS TRSY TINT TN TURKEY TBID TD TP TAGS TFIN TK TR THPY
UK UNSC USTR UG UNGA UZ USEU US UN UNC USUN UP UY UNESCO USPS UNHRC UNO UNHCR UNCHR USAID UNVIE UAE UNMIK USOAS UNFICYP UV UNEP UNODC UNCHS UNIDROIT UNDESCO UNCHC UNDP UNAUS USNC UNCSD UNCND UNICEF UNDC UNPUOS UE
VT VZ VE VTEG VTPREL VM VI VTIZ VAT VN VC
WS WTO WTRO WTRQ WI WZ WHO WFP WWARD WHA WB WBG WIPO WITH WMO WEU WHTI WMD WA
XA XF XM XL XW XV XR XB XU XY XH XG XE XK XX XD XI XT XS XC XZ XTAG XQ
YE YM YI YMCS
ZI ZO ZU ZEALAND ZK ZR ZF ZP ZN ZA ZB ZOELLICK ZL ZANU ZJ

### Browse by classification

CONFIDENTIAL CONFIDENTIAL//NOFORN SECRET SECRET//NOFORN UNCLASSIFIED UNCLASSIFIED//FOR OFFICIAL USE ONLY

### Community resources

Follow us on Twitter Check our Reddit Twitter this Digg this page Contact us on IRC

courage is contagious

### Viewing cable 08DUBLIN556, THE BANK GUARANTEE: AN IRISH SOLUTION TO AN IRISH

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:

- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.

To understand the justification used for the classification of each cable, please use this WikiSource article as reference.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #08DUBLIN556.

Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
08DUBLIN556 | 2008-10-09 10:21 | 2010-12-13 23:00 | CONFIDENTIAL | Embassy Dublin

`

    VZCZCXRO2027
    PP RUEHFL RUEHKW RUEHLA RUEHROV RUEHSR
    DE RUEHDL #0556/01 2831021
    ZNY CCCCC ZZH
    P 091021Z OCT 08
    FM AMEMBASSY DUBLIN
    TO RUEHC/SECSTATE WASHDC PRIORITY 9491
    INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
    RUEHBL/AMCONSUL BELFAST PRIORITY 0806

` `

    Thursday, 09 October 2008, 10:21
    C O N F I D E N T I A L SECTION 01 OF 02 DUBLIN 000556
    SIPDIS
    EO 12958 DECL: 10/09/2018
    TAGS EFIN, ECON, PREL, PGOV, EI
    SUBJECT: THE BANK GUARANTEE: AN IRISH SOLUTION TO AN IRISH
    PROBLEM
    DUBLIN 00000556 001.2 OF 002
    Classified By: Pol/Econ Chief Theodore S. Pierce. Reasons 1.4 (b/d).
    ¶1. (C) Summary: On September 29, the Irish government announced plans to back deposits in all Irish-domiciled banks. Foreign banks with significant Irish operations were initially left out of the scheme but some look now to be included. Irish government officials maintain that impaired assets at Irish banks are still relatively insignificant and are mostly confined to commercial property loans. They say that regulatory oversight of the financial sector will be tightened and that the drying up of credit to Irish banks forced the decision to guarantee all deposits. The crush on Irish banks could not have come at a worse time -- immediately preceding next week’s presentation of what is widely expected as the most austere government budget in years. End Summary.
    A Crisis Unfolds
    ----------------
    ¶2. (U) Following a late-night September 29 meeting with leading bankers -- Central Bank Governor John Hurley and Chief Executive of the Financial Regulator Pat Neary -- Prime Minister Brian Cowen took the decision to guarantee the deposits, loans, and obligations of the six Irish-owned Banks for two years. The next day Finance Minister Brian Lenihan and Hurley briefed their key European counterparts. During a marathon session (almost 22 hours, a record) on October 1, the Irish parliament passed legislation that would make the guarantee operational. On October 2, President Mary McAleese signed the Credit Institutions (Financial Support) Bill 2008 into law. On October 6, Lenihan faced questions about the scheme from other EU Finance Minister at an ECOFIN meeting in Brussels and the Central Bank and the Regulatory Authority met to finalize the terms of the plan. On October 8, the Irish Cabinet met to discuss the plan but delayed announcing anything until the EU gives its formal approval, which is widely expected to happen early next week.
    A Perfect Storm
    ---------------
    ¶3. (C) Econoff and visiting EUR/WE Desk Officer met with Central Bank and Financial Services Authority officials Gordon Barham, Maria Woods, and Billy Clarke on October 6 to talk about the government’s bank guarantee plan. Clarke said that the regulator had been carefully watching the banking sector as the months-long credit contraction unfolded. Explaining the seemingly sudden pressure on Irish banks last week, he said a “perfect storm” of external events related to the credit crisis had dried up the traditional sources of financing for Irish financial institutions. Barham maintained that the level of impaired assets in the system stood at between 0.5 and 0.8 percent and these are mostly confined to loans to commercial property developers. When pressed, Barham said the media had exaggerated the level of problem assets and those that existed could be managed.
    ¶4. (C) Clarke hesitated to make predictions but said that it is “likely” the regulatory system would move from one that relied heavily on bank management working within broad guidelines laid down by the regulator to a “rules-based” one.  An example he gave was that the regulator may be given the authority to limit the percentage of the banks’ loan books that are extended to any one sector (i.e. commercial or residential property). Barham and Clarke said that the banks would not be allowed to securitize and sell impaired assets under this scheme. Rather, the banks, the regulator, and other government agencies would have to figure out how to “unwind the problem assets without exposing the Irish taxpayer to undue risk.”
    ¶5. (C) Econoff spoke with Kevin Cardiff, Second Secretary General at the Department of Finance, who has been deeply involved in putting together the guarantee package. Cardiff echoed the regulator and pointed out that auditors contracted by his Department to look at the books of at least two of the institutions under pressure came away with “a favorable impression of the loan books.” While he admitted that the amount of “speculative loans, or those that are not currently productive, is not insignificant,” he stressed that all involved in putting together the package were confident that the government would not be forced to bail out the banks.
    ¶6. (C) Cardiff said that credit to the Irish banks “virtually dried up” on September 29 and that the government had to step in to salvage the Irish financial sector. The genesis of this was classic “herd mentality” based mostly on rumor and innuendo about Irish banks rather than any hard facts. However, fighting the herd became impossible, he added. He added that non-Irish institutions with significant Irish
    DUBLIN 00000556 002.2 OF 002
    operationsXXXXXXXXXXXX would likely be included in the scheme. XXXXXXXXXXXX
    ¶7. (C) Although the move did not win any friends across Europe, Cardiff said that there is a gradual realization in Brussels that each country should be allowed to tailor its response to local conditions. He characterized the Irish government’s discussion with EU officials as “positive” and indicated that the Irish solution would soon gain approval. In an aside, he pointed out that Irish Finance Minister Brian Lenihan and his British counterpart, Alistair Darling, had engaged in a very constructive exchange of views. Cardiff continued that the prevailing mood in Europe is that “large-scale failures just make things worse” and that he expected more Irish-like solutions. He warned, though, that the battle had just begun.
    Comment
    -------
    ¶8. (C) Against the background of a steep slump in the property market and anecdotal evidence we have picked up, it may be that government officials are being a bit optimistic in their assessment of the level of impaired assets. It begs the question: if the level of impaired assets is not a problem, why the sudden pressure on Irish banks? Perhaps the perfect storm answer is the right one. Whatever the answer, the Irish government has its work cut out for it as it works with the private sector to stop the bleeding and then rebuild the Irish financial sector. With the government maintaining that the Irish banking sector nearly collapsed during the past two weeks and the announcement of what is expected to be a very draconian 2009 government budget next week, Irish economic policymakers are facing their most significant challenge in decades. FOLEY

`