Thursday, September 30, 2010
This bail-out will cost the taxpayers 22,500 euros EACH
The cost of bailing out the Republic of Ireland's stricken banks has risen to 45bn euro (Â£39bn), opening a huge hole in the Irish government's finances. The increased cost will see the government run a budget deficit equivalent to 32% of GDP this year. The cost includes a bill of up to 34bn euro to rescue the worst-hit lender, Anglo Irish Bank. The government said it would now have to rewrite its budget to cut borrowing more quickly in the coming years. But Irish finance minister Brian Lenihan defended the action, saying Anglo Irish Bank was too big to fail.