Budget deficit doubles due to bank bailout

THE massive cost of bailing out zombie banks has been laid bare with figures showing the size of the budget shortfall is double what it was this time last year because of payments made to Anglo Irish Bank and Irish Nationwide Building Society.

A massive €3 billion — the first of 10 installments — was pumped into the institutions at the end of March, bringing the budget deficit to €7bn compared to €3.9bn in the same period of 2010.

A similar sum will be paid annually this time every year for the next decade to make up the €30bn of “promissory notes” committed to the institutions in March last year. These include €25.3bn committed to Anglo and €5.3bn to Irish Nationwide.