Ireland’s National Asset Management Agency (NAMA) on Tuesday announced the haircuts it will impose on toxic loans submitted to it by Irish banks, including Allied Irish Bank and Bank of Ireland.

Too large a haircut would leave either bank with a capital-raising dilemma, which may force further recapitalisation by the government, as the FT reported on Tuesday. Shares in both banks have fallen heavily since the plan was trailed at the weekend.

The haircuts for both banks are substantial, as this chart shows (click to enlarge):

This entry was posted by Joseph Cotterill on Tuesday, March 30th, 2010 at 16:42 and is filed under Capital markets. Tagged with allied irish bank, bank of ireland, haircuts, ireland, Nama. Edit this entry.