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Spending: Bank bailout has cost €24bn so far

The State has spent or committed a total of €24.35bn on measures to stabilise the banking crisis.

According to the Comptroller & Auditor General, financial support up to the end of July 2010 included €7bn invested by the National Pensions Reserve Fund in AIB and Bank of Ireland, €4.2bn spent supporting Anglo Irish Bank and taking Irish Nationwide and EBS into State ownership and promissory notes worth €10.3bn have been issued to Anglo Irish Bank, €2.6bn to Irish Nationwide and €250m to EBS.

It also reveals a further €10bn in promissory notes for Anglo Irish and €437m for EBS fell outside the period reviewed by the auditor.

Bank liabilities covered by the State guarantees amounted to €334bn. This included €78bn for the deposit guarantee scheme.

In return for the guarantees, the State has collected fee income amounting to just over €1bn from the covered institutions.

Meanwhile, the Dublin law firm Arthur Cox Solicitors was paid almost €10m for advice on the banking crisis.

Figures from the C&AG on the cost of advice to various State agencies arising from the banking crisis amounted to €33.7m.

Arthur Cox received about one third of the total sum, receiving €9.66m for advising the Department of Finance, and €1.95m from the National Pensions Reserve Fund.

The second biggest beneficiary was US bank Merrill Lynch, which received €7.33m for advising the National Treasury Management Agency.


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