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Thursday 30 October 2014

Lenihan on Black Thursday:

FINANCE Minister Brian Lenihan has criticised RTE for its "constant debate" about Ireland defaulting on its debt.

Mr Lenihan said the station's coverage is not helpin when it comes to securing loans abroad.He was speaking on Morning Ireland today after it was confirmed the cost of bailing out Anglo Irish Bank could hit €34bn.

ON Today's announcement, HE SAID:

"The total bill amounts to €34bn in terms of the rescue of Anglo Irish Bank and Irish Nationwide with a possibility of very little return. This brings to a close the public response to this crisis. It is important that we have a credible path to show how we propose to meet this commitment.

"Accordingly, a four-year budgetary plan, incorporating the annual measures will be published in early November. No additional borrowing arises this year as a result of this capital support to our banks. Our ongoing cash-funding requirements for these measures will be spread over more than 10 years."

on the Budget

"I will have a detailed plan in early November for exactly what has to be done. The banks are out of the way now. Let's have a clear debate on the public finances.

"Yes of course the figures are horrendous but will be managed over ten years. It is an urgent and immediate priority to restore our banking system to health. Any Anglo failure would bring down the sovereign. It is systematically important -- not because of any intrinsic merit in the bank, I can assure you, I don't see any -- but because of its size relative to the national balance sheet"

on Irish Nationwide

"I have provided €2.7bn to cover the losses on lending by the Society. The NTMA has recommended I provide a further €2.7bn, bringing the total to €5.4bn."

on AIB

"The new total capital requirement for AIB, after deducting the capital generated on the sale of its Polish subsidiary, is €7.9bn.

"It is likely that the State will hold a majority shareholding in AIB.

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