George Garvey : Stiffing Anglo bondholders would be high-risk strategy
On the second anniversary of the deposit guarantee we still don't know how much it is going to cost the taxpayer to bail out the Irish-owned banks. Now the government has decided not to force Anglo bondholders to share the pain, writes George Garvey
Published 28/09/2010 | 05:00
TOMORROW marks the second anniversary of the Government's decision to unconditionally guarantee the deposits and bonds of the Irish banks, a decision which exposed the Irish taxpayer to a potential liability of €440bn.
Since September 2008 the Irish banking crisis has been like a wound that refuses to heal.
Over the past two years the estimated cost of fixing our banking system has continued to rise with ratings agency Standard & Poor's (S&P) estimating last month that the final bill could hit an astronomical €90bn -- the equivalent of 70pc of the value of the country's entire economic output as measured by GNP in 2010.