Irish pay over eurzone average for loans

Loans recently issued by Irish banks carry a higher interest rate than the eurozone average, although longer term loans are below the eurozone average, according to figures released by the Central Bank.

Moreover, deposits are showing a similar trend. Interest rates on deposits have risen much faster than the European average over the past two years.

These figures reflect how much of a bind the Irish banking system is in. Over the boom, there was a massive credit splurge across the banks. Irish financial institutions operated on very low margins.