Here is the text of an article written last week that was published in tonight’s Evening Echo.
Our banks now just worth €12bn
In the course of the past four years Ireland has poured €64 billion into the recapitalisation of just six banks: AIB, BOI, EBS, PTSB, Anglo and INBS. Just over €1 billion was received in return for the sale of around one-sixth of Bank of Ireland so this leaves the total recapitalisation bill at around €63 billion.
Of the €63 billion that has gone into the banks, €35 billion has been provided to Anglo and Irish Nationwide. These dead banks have been merged into the Irish Bank Resolution Corporation (IBRC). The bulk of this money was provided via €31 billion of Promissory Notes issued in 2010, while €4 billion of cash was provided to Anglo in early 2009 when we were still in the notional realm of “the cheapest bailout in the world”.
Discussions to change the repayment of this money have been ongoing for months. The aim for Ireland is to try to delay the repayment at low interest rates for a very long time, say 25 years, to allow growth and inflation the opportunity to reduce the real cost of these banking failures.