State could recoup €8bn of €29bn Anglo bailout

The Irish Bank Resolution Corporation could potentially return €8bn to the taxpayer when it is eventually wound up, the bank’s chairman, Alan Dukes, told the Oireachtas finance committee.

The State pumped €29bn into Anglo Irish Bank in 2010 to plug the massive hole in its capital base following the transfer of a large chunk of its loan book to Nama. IBRC is responsible for winding down Anglo Irish Bank and Irish Nationwide Building Society. The Government had to commit €5.4bn to shoring up Irish Nationwide.

In 2011, IBRC’s management team gave guidance that eventual losses at the bank would reach €25bn. Furthermore, it transpired at the Oireachtas committee meeting that a €4bn capital buffer had been put in the promissory notes when they were designed.