Report adds up to estimated €1.3bn a year to the cost of servicing national debt
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The new figures take account of the State’s initial investment, the sale of shares, the dividends and interest from the banks and the complex cost of bailing out Anglo Irish Bank and Irish Nationwide. File photograph: Bryan O’Brien
The bail-out of Ireland’s banks during the financial crisis is now estimated to have cost the State €41.7 billion, according to the latest estimate from the Comptroller & Auditor General (C&AG).
It also adds an estimated €1.1 billion to €1.3 billion a year to the cost of servicing the national debt.
The new figures, contained in the C&AG’s annual report, take account of the State’s initial investment, the sale of shares, the dividends and interest from the banks and the complex cost of bailing out Anglo Irish Bank and Irish Nationwide. The €41.7 billion figure is close to previous estimates made by the C&AG in 2014 and 2016.
The report says that the €41.7 billion figure does not take account of the interest costs which will arise from funding the annual cost of servicing the additional debt in the years ahead. At an average cost of debt of 2.5 per cent, this would work out at €1.1 billion per annum.
The C&AG’s figures include the value of the State’s remaining shareholding in AIB, Bank of Ireland and Permanent TSB – a combined €8.4 billion last year – and NAMA’s retained earnings of €4.2 billion.
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