Noonan examining ways to capitalise banks

It is believed the Minister for Finance Michael Noonan told the IMF that he will look to Contingent Convertible Capital (CoCo) Notes if the banks need additional capital buffers following the stress tests.

The issue came up during his trip to Washington last month. A spokesperson for the Department of Finance said it doesn’t comment on speculation.

The date for the next round of stress tests still has to be decided. Sources familiar with the situation say that a date will be fixed during the next troika review of the economy in July, with the tests most likely to be carried out before the exit of the bailout programme in November.