Anglo losses set to hit €13bn
LOSSES on bad loans at Anglo Irish Bank are expected to hit €13bn when it publishes its results in the next few weeks.
The results, for the 15 months to the end of last year, will take into account most of the discounts Anglo faces on €33bn of property loans it is sending to the National Asset Management Agency.
The group's new management team has also trawled through its €40bn of non-NAMA loans and hopes to dump most of them in an internal 'bad bank' under a massive restructuring plan, reports said today.
The loan losses mark a major deterioration from when Anglo reported €4bn of loan losses for the first six months of the year.
The 15-month net loss is expected to come in below €12bn, as a large debt restructuring last summer delivered a profit of €1.8bn.
Analysts said the figures are likely to spark calls for the Government to refuse to put any more taxpayers money into Anglo Irish and wind it down immediately.
Sources familiar with the restructuring plan were quoted as saying the bank would need an extra €6bn on top of the €4bn pumped in it last summer.
Splitting the bank into an internal 'good bank' and 'bad bank' is said to be the "cheapest way" out of the mess and will force riskier bondholders to absorb some of the losses.
The credit ratings agency, Moodys, warned this week that a wind-down of Anglo would have a negative impact on Government bonds and "severe consequences for NAMA".