Ireland Goes Bust

[Jan Klimkowski]

Ireland for sale:

Ireland could sell banks to Middle Eastern wealth funds

Middle Eastern wealth funds are being touted as potential buyers of Ireland's indebted banks as the Irish government looks for outside investors in the country's financial system.

Former Irish prime minister John Bruton has travelled to the Gulf states, including Saudi Arabia, Bahrain and Qatar, to sound out their interest in buying one of Ireland's troubled banks.

According to The National, an Abu Dhabi-based newspaper, Mr Bruton has met with sovereign wealth funds in the Gulf in an attempt to attract billions of pounds of badly-needed outside investment.

"The message was 'our banks are for sale to any investors, foreign or local'," said a Gulf-based executive quoted by The National.

Mr Bruton told the local press that he was not representing Ireland in an official capacity and was in the region to discuss general investment opportunities.

"We are not here to facilitate the sale of any assets or start any negotiations. That is the government's decision and role, but obviously discussions have taken place about the Irish economy generally. The central bank has clearly said asset sales are being studied," said Mr Bruton.

Irish officials are already understood to have made contact with several large financial institutions as they hunt for "strategic partners" for their banks.

The credit ratings of Ireland's main banks were on Friday downgraded by ratings agency Fitch following its three-notch downgrade of Irish government debt on Thursday.

Standard & Poor's and Moody's have also begun downgrading Irish bank debt as details become clearer of the restructuring of their balance sheets.

Moody's has Bank of Ireland on review for a possible downgrade, citing the terms of potential exchange offer for some of the lender's debt.

http://www.telegraph.co.uk/finance/finan...funds.html