Business Irish

Sunday 18 March 2018

Alan Dukes: Cost of Anglo wind-down may be closer to €25bn, lower than expected

Alan Dukes, chairman of Anglo Irish Bank.
Alan Dukes, chairman of Anglo Irish Bank.

IRISH Bank Resolution Corporation (IBRC) chairman Alan Dukes said today he is hopeful that the cost of the wind-down of the former Anglo Irish Bank will be closer to €25bn and lower than previously estimated.

However, he added that the lower cost was predicated the Irish and British property markets not worsening any further.

He told an Oireachtas committee: "We remain reasonably hopeful that the cost of the operation will be closer to €25bn rather than the range of €29-€34bn estimated in September of 2010.

"This of course highly contingent on what happens to property markets here and in the United Kingdom."

He said it may be possible to wind-down the lender faster than expected but he also said the bank is “extremely vulnerable” to what happens in the eurozone and deterioration in property markets.

Mr Dukes added that he is not involved in current discussions between Ireland and European authorities over a restructuring of the Anglo promissory notes or IOUs.

He also said he did not agree with recent comments from Central Bank executive Fiona Muldoon that the banks are not moving fast enough to deal with mortgage problems.

His comments came as new figures from the Central Bank showed that loans to Irish households fell 3.7pc in the year ending September 2012.

The figures were relatively unchanged on the previous month and fell €88m in September.

Lending for new houses was 2pc lower on an annual basis in September while loans for other purposes declined by 8.4pc.

However, on a monthly basis lending for house purchases was up by €11m.

The monthly net flow of loans to households averaged minus €353m in the three months to end September.

Irish resident private sector deposits increased at an annual rate of 1.8pc, following growth of 0.7pc in the year ending August.

Lending to Irish resident non-financial firms fell by 4.2pc in September, following an annual decrease of 3.2pc.

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