Anglo €22.9bn bailout cost could rise

THE Government hasn’t ruled out the prospect of the value of its total capital rescue of Anglo Irish Bank increasing further, even after the latest state aid approval from Brussels effectively brings the bailout cost of the nationalised bank over the initial €22 billion estimate.

The European Commission yesterday approved the Government’s plan to pump another €8.58bn, through a promissory note, which will see the money invested over 10 or more years, into Anglo, with room for another €1.4bn (taking the total of the latest tranche to €10.05bn) if needed.

In green-lighting the Department of Finance’s plan, EC competition head Joaquin Almunia said the ongoing funding of Anglo is needed in order to “preserve financial stability in Ireland”.