BoI believes €6bn is worst case scenario for write-offs

BANK of Ireland believes that in a worst-case scenarios it will have to write off €2 billion a year in bad loans to 2011 – at best, the write-offs will total €4.5bn.

Bank of Ireland chairman, Richard Burrows, spoke with reporters on the company’s outlook for bad-loan impairments, on the sidelines of a conference in Kyoto, Japan.

“Our base case scenario through to 2011 is to see a loan impairment of around €4.5bn,” he said.