BoI says bad debts could rise to €6bn in two years

Bank of Ireland says its bad debts could be almost twice as severe as previously expected.

In a statement released to the Stock Exchange this morning, the bank says its previous estimate of €3.8bn for so-called loan impairments could hit €6bn by 2011 under a worst-case scenario.

The bank says it believes its current impairments total €4.5bn given the further deterioration in economic conditions.

It says €1.4bn of this is expected to arise before the end of March this year.