S&P: Banks’ debts worse than thought

LEADING stockbroker NCB said after a chaotic 2009 the economy will both expand and contract in 2010, as rating agency Standard & Poor’s warned the Irish banks are facing much worse debts than previously thought.

As a result S&P has downgraded its risk to group three from group four.

“We are forecasting that GDP will expand by +0.6% and that GNP will decline by -0.5%,” said NCB.