Irish Banks need more money to survive – only EUR 24 billion

BBC News: The Governor of Ireland’s Central Bank announced this week that Irish banks need a further infusion of 24 billion Euros just to survive.

The banks’ requirements breakdown is as follows: Allied Irish Banks needs 13.5bn euros; Bank of Ireland needs 5.2bn euros, EBS 1.5bn euros, and Irish Life 4bn euros.

As a result of this, the aggregate amount of the bailed out sum for Irish banks since the financial crisis started will be more than 70 billion Euros.

Why all that money now? Well, explained Prof. Patrick Honohan, Governor of Ireland’s Central Bank: “The new requirements are needed to restore market confidence, and ensure banks have enough capital to meet even the markets’ darkest estimates”.

So far the Irish Republic‘s ‘bailout’ bill since 2010, as BBC News reports, is as follows:-

  • 85bn euros total, of which:
  • 45bn from EU
  • 22bn from IMF
  • 18bn from Irish state pension fund
  • 35bn earmarked for banks
  • 50bn earmarked for budget deficit

Support for Irish banks:

  • 70bn euros recapitalisation, of which:
  • 46bn to date
  • 24bn added after latest stress tests

The 70bn euros to be credited to the banks comes to around half of Ireland’s annual economic output, equivalent to around 17,000 euros for each Irish citizen.

[Finance & Economy Contributor]

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