Government may recover some of the €65bn pumped into banking system

The Government has pumped just over €65bn into bailing out the banking system, and while there is no timeframe for the State’s withdrawal from the sector, there is the prospect that over time it may recover some of its capital investment.

The State now owns AIB, Permanent TSB, Irish Life, the IBRC, and 15% of Bank of Ireland, although it has received €4.3bn from the banks in the form of dividends and fees from the Eligible Liability Guarantee scheme.

There are plans to sell Irish Life once market conditions return to normal.