Anglo set to announce record losses
Published 31/03/2010 | 09:38
Nationalised Anglo Irish Bank is set to announce the biggest corporate losses in Irish history.
The rogue lender, put into state hands just over a year ago amid a raft of unscrupulous lending scandals, is on course to get more than €22bn of taxpayers' money.
It is estimated that Anglo's losses could run to €12bn for the 15 months to the end of 2009 with about €14bn of loans written off and losses being sold at half price to the country's bad-bank National Asset Management Agency (NAMA).
Finance Minister Brian Lenihan has revealed that NAMA will take €10bn of loans from Anglo in April paying 50pc of the book value.
The taxpayer has already foot the bill for a total €4bn cash injection into Anglo in three tranches last year - €3bn in June, €828m in August and €172m in September.
Anglo is to publish its results from the last 15 months in a statement.
Mr Lenihan insisted that winding-up the collapsed bank was not an option.
Based on figures from Anglo and the Department of Finance, Mr Lenihan said shutting down its operation could run up a bill for the taxpayer anywhere from €60bn to €100bn.
"Finding a long-term solution for Anglo Irish Bank is by far the biggest challenge in resolving the banking crisis. The sheer size of the bank means there are no easy or low-cost options," he said.
"Winding-up the bank is not and was never a viable option."