Thursday 8 December 2016

Letters: Why are we following Coalition’s narrative on bailout cost?

Published 08/08/2014 | 02:30

There is a strong sense that the inquiry will focus too heavily on the events running up to the night of the state bank guarantee, when the late Brian Lenihan, pictured, was finance minister. But there are other key areas that need to be thoroughly explored.
There is a strong sense that the inquiry will focus too heavily on the events running up to the night of the state bank guarantee, when the late Brian Lenihan, pictured, was finance minister. But there are other key areas that need to be thoroughly explored.

Reading Daniel McConnell's article on the falling cost of the bank bailout (Irish Independent August 5), I cannot help but ask, why should we follow the Government's narrative on the cost of the bailout?

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For starters, while it is true that the banks have paid out €4.3bn in fees for the bank guarantee, we should not regard these fees as repayments towards the €64bn bailout.

The bank guarantee was, and is, an insurance policy, not a loan repayment scheme. After all, these same banks do not accept life and home insurance premiums as part-payments on a homeowner's mortgage.

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