by Lisa Grimaldi | August 25, 2010

Following last week's announcement that the Bank of Scotland Ireland will close by the end of the year, the Irish Hotel Federation said 150 hotels are under threat, as the bank provides 20 percent (approximately $2.5 billion) of all loans to properties in Ireland. According to the BBC and RTE, Irish Hotel Federation president Paul Gallagher wants an Irish government guarantee scheme for the sector. In an interview with the RTE, Gallagher said "Unilateral withdrawal of these working capital facilities at the end of December would be catastrophic, particularly at a time when other banks are reluctant to take on new customers and when asset securities would continue to be held by Bank of Scotland Ireland."