Business Irish

Thursday 19 October 2017

Guarantee costs banks over €3.1bn

Finance Minister Michael Noonan. Photo: Getty Images
Finance Minister Michael Noonan. Photo: Getty Images
Laura Noonan

Laura Noonan

The State has earned more than €3.1bn in fees from the bank guarantee scheme that was infamously introduced after a late night cabinet session in September 2008.

The figures, revealed by Finance Minister Michael Noonan last week, also show that 2011 has been the most lucrative year to date for the guarantee, with total fees rising 15pc to €1.23bn.

AIB has been the biggest spender, with fees of €1.092bn, followed closely by Bank of Ireland, which has paid €1.07bn for the Government's guarantee of deposits and bonds.

Irish Bank Resolution Corporation (formerly Anglo Irish Bank and Irish Nationwide), which is frequently criticised for honouring its bonds, has paid just over €500m in guarantee fees.

Irish Life & Permanent's total comes in at just under €360m, while EBS (which is now part of AIB) has forked out a total of €124m. Departed Postbank paid €39,000 in fees.

Irish Independent

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