Banks to pay full cost of army escorts for cash transits

Ireland's banks have reportedly agreed to pay the State at least €3m extra every year to cover the cost of providing army escorts for cash transits.

Reports this morning said the sum was agreed in negotiations between Defence Minister Willie O'Dea and the Irish Bankers Federation.

At present, the banks pay around €2.8m annually for army escorts, which amounts to around 42% of the full cost.

This morning's reports said the new deal negotiated by Mr O'Dea would see the State recouping the entire costs incurred through providing military escorts.

The deal will be formally signed tomorrow.