Bailout bill: Cost of Anglo may be less than expected

CENTRAL Bank governor Patrick Honohan has said that the bailout cost regarding Anglo Irish Bank may well amount to less than recent estimates have suggested.

Mr Honohan said the Government’s recent decision to split the nationalised bank “comes as a welcome relief” and that the proposed structure “will provide a secure home for Anglo’s depositors, insulating them from the process of running-off the loan asset over time”.

Earlier this month, the Government decided to split Anglo into a state- backed deposit bank, containing the company’s existing deposit book, and a standalone asset recovery bank aimed at working out Anglo’s non-NAMA bound assets to the best advantage of the Irish taxpayer.