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ALAN Dukes has clarified the losses at Anglo Irish Bank with some certainty. It lent €72bn and between 10% and 15% are paying back what they owe. This suggests the bank lost €64bn.
NAMA will bail it out and hope to recover €24bn leaving a loss of €37bn.
If Allied Irish Bank’s losses reach this level the shortfall will be €12bn, and we will also own it. The other banks’ losses also will have to be paid.
All this will add €60bn to the national debt, no matter what we do. This is €15,000 per head, and paying this off over 20 years at 1% would cost €900 each per year. While this is still a miserable deal it is better than paying 6% for short-term loans that leave us at the mercy of the global financial markets. It’s time to talk turkey with the ECB.
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