State set to write off €46m debt

THE Government is set to write off a bad debt of almost €46 million from a loan issued to a defunct mining company in the mid-1980s.

However the State is pursuing €4.5m in legal costs from certain directors of the company, Bula Ltd, arising out of a series of failed court actions, where damages of €464m were being sought.

The original loans totalling just €1.2m to Bula Ltd were used to cover money owed to three banks, but interest is still accruing on the loans, granted between 1983 and 1986, and the interest now stands at €44.43m, making the total debt €45.6m.