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
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.