Taxpayers will know the full cost of the bailout for failed Anglo Irish Bank by the end of the month, according to the Sunday Independent. It has created quite a strain on Ireland’s financial position within the last few weeks. Alan Dukes, the Anglo Irish chairman admitted the bill could go higher then 25 billion euros. The only thing that is tying up the information from being released is clearance from Brussels, which is apparently going to take about 10 days.
Standard and Poor, the International Rating Agency, cut Ireland’s sovereignty rating last month to AA-, its lowest rating in 15 years. This, of course, was due to its estimated 35 billion euro expense for the bank rescues and the size of the budget deficit.
The newest information released about the failed bank is that market funding accounted for almost 50 billion euros. Customer funding amounted to 23.1 billion euros.
One of the results of the weakened financial state, is the rate which was demanded to charge when lending to Ireland. It was 6.34 per cent. While the rate earlier this year was below 5.
Finance Minister, Brian Leniham ended any speculation about Ireland needing emergency support, despite an earlier report from the International Monetary Fund, saying: “The IMF released a statement saying there is no question of Ireland needing emergency support.
“Unfortunately this was a very damaging report, because of the headlines.
“It has caused some minor speculation on world markets but that speculation has eased.”
He added: “But it was an inaccurate report. Ireland is not in that position and the Barclays report didn’t suggest Ireland was in that position.
“Barclays are very good buyers of Irish debt and the position is that Barclays commended the Government, saying it had taken all the right steps so far. But, of course, it did point out that the Government would have to continue to take the right steps.”