Bad loans in Ireland – we knew it was bad but …
The latest half yearly results from Lloyds Banking Group show some quite scary figures.
We are all aware that due to unprecedented cavalier lending in the property sector, exposure by the banks was high. The reckless lending was particularly bad in relation to Ireland which had created numerous property moguls almost out of nowhere. Well, the position continues to deteriorate.
Lloyds figures released this week now provide for a huge £17bn of impaired Irish loans, which do not look like being paid any time soon. The figure above represents an increase of over £3 billion in the impairment just over the last 6 months as property prices continue to fall in both the UK and Ireland.
These figures are staggering and astronomical and simply remind us of the true madness of the first decade of the 21st century, which we are all starting to pay the price for and for which few have been or will be held accountable.
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