Govt 'may ask for €32bn back after EU deal'

Reports this morning suggest the Government could request the return of as much as €32bn in bank debt under the new deal negotiated at EU level this week.

However, lecturer in economics at the University of Limerick Stephen Kinsella said it was too early to say what the figure would be, or where it would come from.

"(The money) is in at least three significant pots," he said.

"One (pot) is about €31bn in promissory notes. (There is) about another €25.4bn of shares in AIB and Bank of Ireland and another nearly €12bn in direct capitalisation in banks such as Anglo and so forth…These can all be treated differently."