Forex: Stress tests show a 24 billion euros need for Irish banks

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According to the Central Bank of Ireland, Irish banks will have to take a further 24 billion euros in the near future to cope with the possibility of a collapse. The results of the stress tests in four banks indicated that not only large funds are required to cover bad mortgage and other type of loans but also an increase their reserves is required.

The following amounts were announced to be received for each of the following major banks. Allied Irish will receive 13.3 billion, Bank of Ireland 5,2, the Irish Life & Permanent 4 and EBS 1,5 billion. In an attempt to avoid collapse that could lead one step close to bankruptcy, Ireland has put in two years 70 billion euros for the nationalization of banks. The stress test results show that while growing problem in the property market in Ireland and the increasing foreclosures.