Honohan says net cost of Anglo bailout to hit €25bn
Addressing the Small Firms Association Mr Honohan also said that he believes that the National Asset Management Agency (NAMA) will break even because of the low values it has paid banks for transferred property loans.
Mr Honohan estimated that the costs to the Exchequer of the recapitalisation and restructuring of the Irish Nationwide Building Society at about €2.5bn in net budgetary costs. “With the NAMA purchases not yet completed, I can’t quite narrow the Anglo figure down precisely. However, rounding up recent estimates to be on the safe side, it would be a pessimist who would put the taxpayer’s net cost above €25 billion. That is a huge sum and it’s unconscionable that it could have arisen. I will have more to say about this in my report to the Minister for Finance at the end of the month.
