Better safe than sorry

29 May 2009 By George Hay Follow @gfhay

With state borrowing soaring, the last thing the Irish government needs is to pump E4bn into the nationalised Anglo Irish Bank. But the consequences of letting the bank fail altogether could be even more expensive.

This content is for Subscribers only

Context News

Anglo Irish Bank is to receive E4bn ($5.64bn) from the Irish government after posting a net loss of E3.7bn in the six months to March 31.

The bank has set aside E4.1bn to cover potential losses on loans to real estate developers.

Brian Lenihan, the Irish finance minister, said the cash injection was intended to prevent damage to the wider Irish finances.

The government's overriding concern has been to protect the economy from the wider losses that would occur in the event of the failure of the bank," he said.

Email a friend

Please complete the form below.

Required fields *