The Chairman of Anglo Irish Bank, Alan Dukes, has announced that Irish banks will need another $68.2 billion (€50 billion) of capital on top of the previous Irish Government bailout.
The Irish Government has already pumped $61.4 billion (€46 billion) into the Irish banks. Under the bailout agreement made with the International Monetary Fund (IMF) and the European Central Bank (ECB), made last year, they also have access to another $47.7 billion in extra capital.
Today Dukes emailed a copy of his speech which read "A clean banking core will require something in the region of €50 billion …A clean banking restructuring implies the acceptance of irrecoverable losses.”
So far the Irish state has injected $39.9 billion (€29.3 billion) into Anglo Irish Bank. Dukes has said that the "black hole" in the Irish financial system may amount to €20 billion to €40 billion.
He said that filling this "black hole" will require "long term 20 year to 30 year funding, on which there will be no return.”
Last month the Irish Central Bank Governor, Patrick Honohan said that he would be "disappointed and surprised" if the entire $47.7 billion, agreed under the IMF / ECB bailout, was necessary.
Under the bailout agreement $13.6 billion is capital is available to Irish banks with another $34.1 billion if required.
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