Exchequer borrowing could hit €30bn

EXCHEQUER borrowing could rise by a massive €10 billion to €30bn in 2010 as a result of the bank rescue plan.

If the Government decides to fund the future capital needs of Anglo, EBS and Irish Nationwide by direct borrowing, that would have obvious implications for the national debt, said chief economist Goodbody Stockbrokers Dermot O’Leary.

If the Government chooses that option, it would push the borrowing requirement up this year from €20bn to €30bn, he said.