Dukes contradicts BIFFO. Says full 35 BN will be needed

[DCon]

From the Tribune today

Alan Dukes, the chairman of Anglo Irish Bank, expects that the additional €25bn of the €35bn earmarked for the banks – which the government has maintained will be used only in exceptional circumstances – will be needed in full to cover more losses across the banking system.

The government has insisted that, after the first €10bn to be injected into banks in early 2011, the next €25bn would be "contingent" on more stress testing of the lenders. The troika of international lenders have together pledged €67.5bn of the €85bn rescue package and €17.5bn will be drawn from Ireland's own resources – the National Pension Reserve Fund and its remaining cash balances.

On the night of the EU-IMF loans press conference two weeks ago, Taoiseach Brian Cowen said the €25bn would not necessarily be used, while €50bn in loans designed to plug the budget deficits would be enough to run the state for the next three years.

But Chris Pryce, lead analyst at Fitch Ratings, the ratings agency that downgraded Ireland last week, estimated that the €50bn would last for only two-and-a-half years because €22bn alone, including bond repayments, would be required next year.

"You would not get three years out of it," Pryce told the Sunday Tribune.

http://www.tribune.ie/business/news/...ed-extra-25bn/

Will this failed government ever stop telling lies??

[TotalMayhem]

while €50bn in loans designed to plug the budget deficits would be enough to run the state for the next three years.

No way, José

Irealand's national deficit is 18-20 billion Euro in 2010 or almost 30 percent of GDP (which is possibly the highest in the world outside Zimbabwe) and whatever they're cutting back next year will be exceeded by the payments for the new debt recently inflicted upon us by the IMF. No matter how they spin it, it cannot be "enough to run the state for the next three years".

[DCon]

Dukes now saying that the 35 BN for the banks will not be enough

THE €35 billion bailout promised for the country’s banks from the EU and IMF rescue package will not be enough, according to the chairman of Anglo Irish Bank, Alan Dukes. The figure, which includes €10bn to be pumped into banks now and another €25bn on standby in case banks’ losses are greater than expected, fails to take into account what will happen when homeowners start to default on mortgages, according to Mr Dukes.

He was speaking ahead of Wednesday’s Dáil vote on the rescue package, worth a total of €85bn, which Fine Gael is today expected to confirm it will oppose.

The IMF team believed an initial €10bn capital injection into banks would rebuild international market confidence and allow them to begin borrowing on the bond markets. But speaking to the International Herald Tribune at the weekend, Mr Dukes said: “I reckon €35 billion is not going to be enough.”

The former finance minister said: “The number that’s there at the moment is based on what we can expect of the commercial property market.”

He added: “I don’t think any assessment has been made of the possible impact of mortgage defaults.”

At a press conference on the night the EU-IMF loans were agreed, Taoiseach Brian Cowen said the €25bn contingency for banks would not necessarily be used.

http://budget.irishexaminer.com/****...gh-139248.html

[DCon]

Dukes now saying that the 35 BN for the banks will not be enough





http://budget.irishexaminer.com/****...gh-139248.html

Covering this on Newstalk soon

[TotalMayhem]

Dukes now saying that the 35 BN for the banks will not be enough

Of course not. Throw a banker a 35 billion lifeline and tell him not to use all of it? You got to be living in La-La-Land.

He'll grab it all and then tell you how bad a shape his bank is in. It did wok before, didn't it?

[C. Flower]

Of course not. Throw a banker a 35 billion lifeline and tell him not to use all of it? You got to be living in La-La-Land.

He'll grab it all and then tell you how bad a shape his bank is in. It did wok before, didn't it?

Didn't he say €39 billion, on the Vincent Browne programme?

And more to the point, isn't the idea that there is a "final figure" for Anglo Irish, a fabrication? Are they still holding derivatives? and various forms of financial betting?

Or in this 3 card trick being run by Lenihan, has this all been passed to NAMA ?