Today’s data release from the Central Bank blows that theory out of the water. It appears that over the past month or so Ireland’s banks have stepped up their emergency borrowing from both the Irish Central Bank and the ECB. The Corner Turned blog (which provided a useful list of the banks’ self-issued bonds back in February) sums today’s position up succinctly: “This, needless to say, is shocking. What it seems to show is that the funding situation of Irish banks have reached critical/disasterous levels.”
This can’t go on much longer.