Banks’ stress tests - Delusion on debt stymies reform plan

WE were assured that it would be the cheapest bank bailout in history but two-and-a-half years later the bill is not yet finalised. Neither is it even likely that this afternoon’s publication of the stress tests on Ireland’s banks will be conclusive.

Bank of Ireland, Allied Irish Banks, Irish Life & Permanent and the EBS, are being stress tested to try to establish how much more of the €35 billion EU/IMF bank bailout fund is required beyond the €10bn already set aside to stabilise broken banks.

Estimates vary wildly, ranging from €10bn to €20bn but if we have learnt anything since September 2008 it is that it is impossible to rely on estimates as one after another was overwhelmed by harsh reality.