Ireland to pour more cash into the banks
By Shawn Pogatchnik |
October 1, 2010, Friday
|
Print Edition
Print Edition
EUROPE'S debt crisis dumped more woe on Ireland's taxpayers yesterday as the government announced it must pour 12 billion euros (US$16 billion) more of their money into a crippled banking system.
Irish government leaders described the total bill to fix their banks, about 45 billion euros, as "horrible."
The bailout will swell Ireland's deficit this year to a staggering 32 percent of economic output, the biggest in post-World War II Europe.
Yet markets seemed to find solace in the view that Ireland at least had come clean about the worst of its troubles.
Irish government bonds rose, while losses were limited on European stock markets and European Union officials expressed confidence in what Ireland had done.
Finance Minister Brian Lenihan announced that Ireland will pump 6.4 billion euros into the Anglo Irish Bank, 3 billion into the Allied Irish Bank and 2.7 billion into the Irish Nationwide Building Society.
He said the government expects to spend a total of 45 billion euros in resurrecting five banks - equivalent to 10,000 euros for every man, woman and child in Ireland.
Only the Bank of Ireland will require no new aid from the state.
"This is a horrible legacy, the figures are numbing, and one would really wish we didn't have this legacy from our property bubble and our banking system.
"But we had it, we have to deal with it," said Eamon Ryan, the government's communications minister.
Irish government leaders described the total bill to fix their banks, about 45 billion euros, as "horrible."
The bailout will swell Ireland's deficit this year to a staggering 32 percent of economic output, the biggest in post-World War II Europe.
Yet markets seemed to find solace in the view that Ireland at least had come clean about the worst of its troubles.
Irish government bonds rose, while losses were limited on European stock markets and European Union officials expressed confidence in what Ireland had done.
Finance Minister Brian Lenihan announced that Ireland will pump 6.4 billion euros into the Anglo Irish Bank, 3 billion into the Allied Irish Bank and 2.7 billion into the Irish Nationwide Building Society.
He said the government expects to spend a total of 45 billion euros in resurrecting five banks - equivalent to 10,000 euros for every man, woman and child in Ireland.
Only the Bank of Ireland will require no new aid from the state.
"This is a horrible legacy, the figures are numbing, and one would really wish we didn't have this legacy from our property bubble and our banking system.
"But we had it, we have to deal with it," said Eamon Ryan, the government's communications minister.
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