BANK OF IRELAND FOLLOWS AIB IN CHANGING RULES OVER ACCOUNT FEES - Bank of Ireland has defended its decision to change the rules governing fees on its current accounts that will see over 200,000 customers face charges, writes the Irish Examiner. A spokesperson said the provision of current accounts by the bank was a costly exercise. "Upgrading our online services and providing facilities like apps; these are considerable investments for the bank and the bank has to get some funds back." The changes in accounts mean consumers now have to keep a minimum balance of €3,000 in their account or else they will face fees. The changes come into effect on November 19. Bank of Ireland had provided free banking if you had €3,000 passing through your account in a financial quarter and you made nine online or telephone banking transactions. Customers who fail to keep a minimum balance of €3,000 will be hit with a transaction fee of up to 28 cent per withdrawal, lodgement, or transaction. "Bank of Ireland confirms that it is introducing revised qualification criteria for customers to benefit from ‘no transaction fees offer’ on their personal current account with effect from the start of the fee quarter commencing 19 November 2012," the bank said. The customers will also miss out on interest that they could earn on their €3,000 balance as there will be no interest paid on this sum.
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NAMA PAID €3.5m FROM RECEIVER'S SALE OF LAND TO UCC - State agency Nama has been paid €3.5 million by the receiver of part of builder and developer John Fleming’s property empire following a land sale earlier this year. The Irish Times says that Mr Fleming’s businesses were placed in receivership and liquidation in early 2010 owing more than €1 billion to the banks after the Supreme Court refused to approve a rescue plan for his Tivway group proposed by George Maloney of Baker Tilly Ryan. Documents recently filed with the Companies Registration Office show Nama recovered €3.5 million earlier this year from the sale of some property owned by John J Fleming Construction to University College Cork. The papers, filed by receiver Bill O’Riordan of PricewaterhouseCoopers, show that the property, at Curraheen on the western edge of Cork city, was sold to the university for €3.55 million. Of this, Nama received €3.51 million. A second document, filed by Eoin Ryan of BDO, who was appointed by EBS, shows the company has 38 residential properties, which are valued at €6.6 million. Anglo Irish Bank, now known as Irish Bank Resolution Corporation, appointed Mr O’Riordan. Tivway owed the bank €260 million. Kenneth Fennell of Kavanagh Fennell was appointed liquidator to the company. Nama recently put Fota Island resort, which consists of a five-star hotel, two golf courses and 120 lodges, on the market. It is known to have attracted a number of bids. One is led by former professional golfer and K Club director John McHenry. Thai billionaire Andrew Yau, who operates a number of golf resorts in the Far East, has reportedly tabled another bid. Cohalan Downing and Colliers International are selling the property on the instructions of Mr O’Riordan. It has a guide price of €20 million.
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SENIOR ECB CHIEF DASHES HOPE FOR INTEREST RATE CUT TO 0.5% - Hopes for a further rate cut for tens of thousands of Irish homeowners on tracker mortgages have been dashed as a European Central Bank member downplayed the possibility. The Irish Independent writes that ECB executive board member Benoit Coeure said yesterday that policymakers may not cut interest rates further as confidence in the euro area's economic outlook is improving and inflation remains high. Each 0.25% cut in the ECB rate almost immediately reduces monthly payments for about 200,000 tracker mortgage holders in Ireland. There had been hopes for a further cut in the ECB base rate to just 0.5%. "At the current juncture, the jury is open as to whether there should be another rate cut," Mr Coeure said. "It's not absolutely obvious that another rate cut would be necessary in light of recent economic indicators and in light of inflation developments. As you know, inflation developments at the end are what matters most for us." The ECB this month raised its inflation forecasts for this year and next, even as the sovereign debt crisis is threatening to push the 17-nation euro region into recession. Yet, details of a new bond-purchase plan unveiled by ECB President Mario Draghi earlier this month boosted financial markets and helped ease concerns about the severity of the economic slowdown. Investor confidence in Germany, the region's largest economy, gained for the first time in five months in September and gauges of activity in the manufacturing and service industries rose more than economists forecast. At the same time, countries in the European periphery are struggling with record unemployment, sluggish consumption and dwindling exports.
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IKEA BOSS PROMISES MORE OPENNESS - Ikea’s chief executive said the privately owned flatpack furniture retailer would continue to open up as he defended its culture after spying and bribery problems. Mikael Ohlsson told the Financial Times the Swedish group would talk more about its actions and strategy only two years after it first started disclosing annual profitability and sales. Asked if Ikea was secretive, he said: “I know it has been perceived like that. A lot of that is disappearing. We have focused always on our customers, on our range, on our suppliers. We have spent very little time to make interviews with the Financial Times.” He added: “We show [products] in reality rather than talk about things. I hope we will always focus on reality first. But gradually we are describing more what we are doing ... We have maybe been a bit shy.” Recent weeks have seen a flurry of activity from Ikea. The Swedish group, the world’s largest furniture, announced that Mr Ohlsson would step down as chief executive next year. At the same, it also disclosed that the sons of Ingvar Kamprad, the founder, had more prominent roles within the group than previously realised. And it unveiled plans to invest up to €20bn by the end of the decade as it seeks to more than double the pace of store openings. That came after a sister company of the retailer said it would start building budget hotels.
