Ireland’s taxpayers may pay €25bn euros to rescue Anglo Irish Bank Corp. and Irish Nationwide Building Society, the Economic and Social Research Institute said.
The government will pump €22bn, equivalent to 65% of last year’s tax revenue, into Anglo Irish, once the country’s third-biggest lender, the Dublin-based institute said in a report today. Irish Nationwide needs €2.6bn.
Ireland’s banks began to unravel two years ago as the real- estate market slumped. Property prices have fallen by half from their peak and the government has set up the National Asset Management Agency, a so-called bad bank, to purge lenders of toxic loans. The total gross cost of the bailout, including the purchases by the agency, may amount to about €73bn, the ESRI said.