Business Irish

Friday 24 March 2017

Anglo set to announce record losses

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."

Press Association

Promoted articles

Also in Business