Allied Irish Says Reports of Borrowing From Fed Are Exaggerated
Allied Irish Banks Plc said a newspaper report it borrowed 27 billion euros ($36 billion) from the U.S. Federal Reserve are exaggerated because each loan was rolled over rather than cumulative.
The Dublin-based lender accessed the money under the Fed’s Term Auction Facility, the Sunday Independent reported today, citing files released by the U.S. central bank. The biggest single borrowing was for $3.3 billion and was taken in July 2009, the newspaper reported.
“Twenty-seven billion dollars is a gross exaggeration of the nature of the funding provided,” Ronan Sheridan, a spokesman for Allied Irish, said by telephone today. “When the money is borrowed for one month, it is replaced the following month. This does not represent an accumulation, it is not a new loan. It is a rollover of an existing facility.”
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