Great, just great… August 31, 2010
Posted by WorldbyStorm in Economy, Irish Politics.trackback
State-owned Anglo Irish Bank has announced a €8.2 billion loss for the first six months of 2010.
This is well in excess of the previous six-month deficit of €4.1 billion posted last year and means Anglo has set a new Irish corporate record for a loss in a six-month period.
And…
Mr Lenihan admitted today that the bank had posed “a very serious problem for the economy” and said the Government, the Anglo Irish board and the Commission was working to bring “certainty and finality” to the bank “problem.”
…and how much more are we going to pay?
Ratings agency Standard & Poor’s estimated last week that the cost of Anglo to the State could rise to €35 billion over time.
Let’s just recall by way of comparison that after the monies removed last year, and this, we can anticipate according to the Stability Programme €3bn in expenditure cuts in 2011 and a further €3bn in 2012 and… well let’s not even think of 20013.
The Cedar Lounge Revolution 
Indeed, it could still be going on by then….
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It’s interesting how the cost of Anglo has risen from €4b to €10bn to €20bn to the current estimates. Breaking the news gently.
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Then again, perhaps not. The RoI state (I nearly wrote ‘we’ – I don’t know about you but I don’t feel I have any stake or control of it to justify the ‘we’) is ‘borrowed ahead’ by the NTMA until some time early next year. At which point sovereign default becomes a distinct possibility.
Between them there is a huge tranche of bank debt to re-finance and the renewal (probably) of the infamous guarantee, by and increasingly unstable government. Plus phase two of the current financial crisis.
This pack of cards could tumble any time soon.
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“The only game in town” Lenihan talked about €56bn of ‘deposits’ in Anglo on RTE today. Slip of the tongue (since there were EUR23.2 billion of deposits as of June. 30, 2010) or a deliberate attempt to confuse bond holders (gamblers) with depositors?
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Now that’s interesting. It’s really getting to the point where they seem to be pushing it down the line as best they can…
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Maybe there was €32.8bn ‘Bed and Breakfasting’ in Anglo today.
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