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2011 annual reports for Irish banks reveal potentially catastrophic losses and additional bailouts requirements « NAMA Wine Lake

So far Ireland has spent €67.8bn bailing out the banks, comprising €62.8bn in cash and promissory notes directly injected into the banks, and a further €5bn gifted to the banks by NAMA in state-aid and for which we are now on the hook if property prices don’t recover. In a country whose GDP was €156bn in 2011, this represents 43% of GDP… But as bad as Ireland’s bailout costs are so far, they could be set to grow even more…

The 2011 annual reports for Bank of Ireland, AIB/EBS and Irish Life reveal the scale of losses that will be in store if our economy doesn’t turn around and grow… Here is the summary of the loan books in 2011 which show that the overall difference between “carrying value” and “fair value” for these three institutions is an almighty €38bn which if it materialised would wipe out the entire capital base and need nearly €20bn in additional capital to boot, just to keep banks solvent. To give them adequate capital buffers might involve a further €20bn. So €40bn, all told on top of the €72bn current and projected cost.

2011 annual reports for Irish banks reveal potentially catastrophic losses and additional bailouts requirements « NAMA Wine Lake

via 2011 annual reports for Irish banks reveal potentially catastrophic losses and additional bailouts requirements « NAMA Wine Lake.

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