€70 Billion Bailout: Is this the final bill for the Taxpayer?

€70 Billion Bailout: Is this the final bill for the Taxpayer?

€70 Billion Bailout: Is think this the final billYesterdays “stress tests” saw the Irish banking sector receive a further cash injection of €24billion bringing the total cost of bailing out the banks to €70billion.

Yesterday marked the fifth attempt to recapitalise our banks: in the earliest days of the crisis in late 2008, it was expected that just €5.5 billion would be needed to plug the gap. This later became €11 billion, and then inched up to €35 billion by March 2010, and to €46 billion last September.

A worst-case economic scenario was outlined by the Central Bank and detailed that bad mortgage debts could total €9.5 billion between now and the end of 2013 and also suggested a capacity for a lot of repossessions.

Commenting on yesterdays events Central Bank Governor Patrick Honohan said the pumping of more taxpayers’ cash into the banks “doesn’t score highly on fairness”, but the State was left with no choice but to rescue the banks once more.

Have Your Say:

  • €70 billion bailout: Do you think this the final bill for the Taxpayer?
There are 22 comments for this article
  1. M at 3:19 pm

    PG., please talk me through the 220 Billion.

  2. PG at 11:44 am

    Actually, the total bail out is €220 Billion.

  3. Shona at 9:18 am

    I don’t think the average taxpayers will be able to cope with the increased taxes and increased mortgage payments – the banks seem hell bent on crucifying anyone trying to pay back a mortgage by increasing the interest rate – our monthly interest bill is more than it would cost to rent the equvalent house in the same area. Surely banks should incentivise people to pay back mortgages faster? Reduce the interest rate if payments up to date perhaps?

  4. H at 12:51 am

    It’s not a €70 billion bail out, it’s a €105 billion bailout, you haven’s included the €35 billion that went to NAMA. By declaring NAMA as a private entity this extra €35B is off the grubberments balance sheet

  5. noel at 3:53 am

    yes but the real bailout starts when interest rates start rising which is fast approaching,that will be a fast burning fuse to a powder keg.this will totally kill the property market and create many problems,the government needs to have their homework done.mortgage holders are going to need help this needs careful planning other than that our country will burn.

  6. Tom Reaney at 3:34 pm

    No way isa this it for the banks but the Govt is paving the way until we finally default. This must be the grand plan.

    IMHO we should default now we have €70Bn, ditch the Euro, get into bed with Obama, adopt the US $ and watch the huge American investment roll in. Not just the big boys like Microsoft or Google or even Boston Scientific or Baxter but some of the hundred of thousands of smaller American companies that would love to get a foothold in Europe.

  7. Lars hansen at 8:55 am

    If Ireland was smart, they will go the way the Icelanders did, “DEFAULT”. Otherwise you end up debt slaves.

  8. james at 11:09 pm

    This is the biggest scam in world hisory and makes the Madoff debacle and the South sea bubble look like kids play money

  9. kieron at 9:58 pm

    How much is this per person in Ireland ?

  10. PEADAR at 9:30 pm

    beef tribunal – larry goodman – con
    13 year lowry [lousy] tribunal – whitwash con.
    bank bailout first report – con
    increases to 24 billion – con
    72 million – con
    Just wake up everone – it all a big whitewash con – we are taken as and regarded as nothing less than a herd of long horned moronic sheep.
    looking forward to the next con – i am pretty sure it will be sooner than later
    sack over paid banker idiots – not a con
    arrest high ranking law breakers – not a con
    corrupt politicians – arrest and try them – not a con
    take ireland back from the imf get our balls back – not a con
    imf ecb allowed ireland to be flooded with money – make them responsible – not a con
    collapse of the euro [countdown] – not a con
    sincerely – peadar

  11. Patrick at 9:20 pm

    The biggest economic mistake in the history of the state was to bailout these sons of……Those responsible are now sitting back on their fat pensions and includes former politicans, bank executives, former Central Bank Governor, not to mention the former Financial Regulator while the ordinary Joe Soap is scratching to make ends meet and so will their children.

    I lived overseas for a quarter of a century and to come home to such a mess where no one is held accountable or prosecuted is making the country look like a very bad joke internationally. McWilliams the economist, is the only one able to read the situation. Why ever let the country get to a stage where it will default eventually? And it will or we’ll have to accept excruciating medicine from our new masters the IMF and ECB. Your old masters like Bertie and his entourage have vanished with their fat pensions! The bondholders took the risk initially just like the guy who bought the highly inflated house as a rental investment. The latter will get screwed but courtesy of Lenihan the foreign bondholders can’t believe their luck with the guarantee. Smart Irish, bull…..! The Icelanders showed who was smart. They will not default on foreign debt because their banks and their bondholders were let go to the wall and their new banks are merrily lending again.

    The Europeans cajoled Paddy to save their own banks under the disguise of protecting the euro. They’ve just shifted the debt perception and all it’s problems from the reckless European banks to borrowers who hadn’t an idea what they were doing.

    The second richest country on earth was used I think by Coughlan / Hannafin in the Dail when cities like Galway didn’t have drinking water in the summer of ’07. Every home was worth a million and 4 wheelers and beamers were the order of the day, yet we hadn’t built the infrastructure to support any of this. Extravagant salaries for public officials and professionals while the country at its best was never more than between a semi-developed economy and a developed economy.

    Final word guys, you all have reaped what you deserve and you all need to wake up regarding politics and the nonsense about what went on in 1921 which the pollies know how to exploit. Is anyone reading this as well remunerated as the latter group? Bear in mind at all times, they are there to work for us and look after our interests and where there is a smell of corruption or incompetency, boot them out at the first opportunity. Politically grew up! No wonder the State is in the catastrophic mess it’s in. Just look at yourself in the mirror to know who the culprits are and where the blame truly lies.

    The final bill for the taxpayer will be a lot harder to quantify than to put a mere number on it. €70 billion?

    How can one ever quantify the loss of not working and being able to support yourself or your family. Impossible to quantify all the social costs from family breakdowns, stress and ill health, forgone educational opportunities to list but a few. One thing for certain, the final bill so that bondholders can forever dwell in lofty places will be carried over to the next generation.

  12. alison at 8:55 pm

    I think its outrageous.it appears the govt is more of the old.At the behest of europe.Well according to all the well known economists it is only a matter of time till default. we are being hit with massive increases on interest hikes ,paying a usc charge to bail out these banks and dragged to court when there is a default on same taxpayers behalf.And the govt is still obsessing over banks and remaining very very quiet on adressing these taxpayers issues.Well its like all quiet before the storm because I believe the peoples revolt is only a matter of time away

  13. Edward at 8:08 pm

    I do not think that the Banks should have been bailed out in the first instance.
    Bankers made millions out of the ‘Tiger’. Are they being asked to return their bonuses paid on their very shaky lending criteria? Of course not. Those that have paid their share and whose ‘boats didnt float over the top on the rising tide’ are left to shoulder the burden. Plus ca change!

  14. Lilian at 7:38 pm

    What taxpayer?
    All the young economically active people are leaving.

  15. bill roche at 7:27 pm

    grow up it has to be done

  16. Ian C at 6:44 pm

    If only this was an April Fools joke..

  17. Joe at 6:40 pm

    are you jokeing the bailout will be nearer to 90 billion for the banks only and a total public debt of 180 billion by 2013. cheaper to set up a new bank with the 24 billion plus a AAA rating for it from the credit rating agencies.

  18. MORGAN SHAUNESSY at 6:21 pm

    I am terminally ill on Disability Allowance and because of this bailout the government STOLE €10 in 2009 budget and a further €8 in 2010 off the Disability Allowance making it impossible to survive and I now have to live wihtout heat and no food most of the time. A meal every three days is the norm for me now. My illness destroys my teeth which I have taken care of my whole life and the governmetn have STOPPED DENTAL CARE on the medical card meaning they consider the poor not good enough to have dental care. The prescription charge is CRIMINAL and comes straight out of my food money. I am not supposed to stop any of my medication as it keeps me a live, I have had to go without it several times because I couldn’t afford the CRIMINAL prescritpion charge. This is nothing short of a deliberate attempt to do away with the poor!!! My life is now one endless round of acute suffering – and what for? To bail out the banks? ITS CRIMINAL AND DISGUSTING and I can no longer afford to run my vehicle my only lifeline. I am a qualified diesel fitter but have not been well enough to work for years. When the jeep failed her DOE test I have had no choice but to work on her myself despite the fact it could kill me. I HATE this country now and everything good about living in Ireland has been stripped away since I came home in 2007…. I also have to pay €24 a week rent a week out of my disgusting pittance which I cannot afford and I notice that amount hasn’t been reduced!!! Tighten the noose around the neck of the poor AGAIN…. Any or all of this can be published, I hope you do publish it.

  19. J. Quio at 5:37 pm

    These banks are so insatiable, sucking the blood of the taxpayers, with multiple paycuts we are nowhere to go but to a check mate. slowly they are killing us with increase interest rate, more taxes, in the end everyone who had a mortgage will just surrender their keys or abandoned their homes and banks will lose more money, so it will never stop, this is a road to infinity. The one who decided this bank guarantee must be hang. Somebody have to be answerable to these chaos, definitely a very wrong decision. They suppose to have the people consulted beforehand in this kind of monumental undertakings that fave our way to hell.

  20. Majid nekoupayan azad at 5:11 pm

    I believe as a company director if I can see a way out from a financial problem that
    My company is in, what needs to be done and also I am the only one that see a recovery solution,
    So what I am trying to say is that, when all these highly paid banking exacutives for AIB and other banks that we are trying to save, how come they were paid all these anormas sallaries and bonuses but when it came to the presure time and crunches they just walked away and gave no solution and also they should have been the ones to repay back all the moneys that they received well above what they have done and they have been worth but us the tax layers have to bail the banks out and also there is no guarantee in getting it right, so why should we trust anyone anymore as it seams to me we are just going deeper and deeper in dept and this money should have been used for job creation and also for funding all these companies that should be saved az they are providing jobs and when are to close we are going to have more job losses so it just does not make any sence at all,
    Also all the social welfare payments should be on a six months basis and if anyone stays on the system after six months then they should be employed for free to help the companies reduce their payouts and expences so that they can clim out if these financial difficulties

    Finally I totally disagree the bank bailouts as I believe that in any sector of the commercial world, if I am the supplier and my customer goes out of business then I take a hit, so why should it be any different for the German banks that lend these un wise loans to the irish banks that are now bankrupts
    Why should we pay for their mistakes?

  21. Karl Arkins at 4:50 pm

    Why should we bail out these banks. Its their reckless lending, to receive FAT Bonus’s that has led to this. They all had and still have paid for mortgages and they are also squandering our money on functions and staff perks etc..
    They should all have their assets stripped from them, and made pay back any owed money.

    We are the laughing stock of Europe and the world.
    People should rise up and say ENOUGH IS ENOUGH.

  22. Alec at 4:22 pm

    This is just another example showing the level of Corruption in this Country. And once again the average joe blogs is paying the price. And not 1 of those B*****ds is in jail!!! Please pray tell what sort of a world is this that allows people bankrupt a Country and walk away???? But then you still have people supporting the likes of Lowry. I cant write here what I think of them but sure you’d have a good enough idea. The hole old Government and every1 of those developers in debt should be behind bars and every single asset they or their wives own should be taken off them. but no why would they do that???? sarcism at its best!! See how they like living on sweet f all each month..
    ah i have had enough and can feel my bloody pressure going up.

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