December 20, 2010 / 9:36 AM / 9 years ago

Ireland defends finmin powers in new bank law

DUBLIN, Dec 20 (Reuters) - Ireland defended on Monday sweeping powers granted to the finance minister in a new banking law that has raised concern at the European Central Bank.

“In view of the framework for the exercise of the minister’s powers under the Bill, there is no question of the central bank, ECB or any NCB as creditors to the guaranteed institutions being exposed financially by the exercise of the minister’s powers under the bill,” a finance ministry spokeswoman said in a statement.

The statement said it was inconceivable the finance minister would make specific directions or implement asset transfers without the support of the central bank.

Ireland’s parliament approved the banking law, which will also impose losses on subordinated bondbolders, last week.

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