Anglo strangling the state’s options to deal with the jobs crisis

Number unemployed 435,000

To put this in perspective – The national development plan will cost €39 billion over the next 7 years. The government is spending €22 billion to keep Anglo Irish Bank going and this may rise to almost €40 billion in time. Anglo lost €12.7 billion in 15 months to december 2009 azfter a €15.1 billion write-off of bad loans. The government claim that closing Anglo irish would cost €70 billion but have refused to let the opposition evaluate the accuracy of this estimate.

Anglo Irish Bank – Loan Book €72 billion

Transfer to NAMA – €36.6 billion of property and cinstruction loans

70% of these NAMA loans are either well in arrears or the value of their security has collapsed.

Anglo has put €10.1 billion to cover losses on these NAMA loans.

Anglo has €36.5 billion of other loans and 25%are impaired. €4.8 billion has been set aside to cover impairments in this category.

Anglo Irish has €22.2 billion of non-NAMA loans performing normally.

Quinn Group owes Anglo €22.8 billion.

THE NATIONAL Asset Management Agency (Nama) has applied a discount of 87% to the loan provided by Anglo Irish Bank to buy the controversial Irish
Glass Bottle site in Ringsend, Dublin in a €412 million transaction in 2006. The discount reflects the collapse in the value of the property, which was written down to €50 million by the Dublin Docklands Development Authority (DDDA) – a drop of 88 per cent in value.

Anglo and Allied Irish Banks provided a €288 million loan to fund the purchase of the site, which involved developer Bernard McNamara, financier Derek Quinlan, the DDDA and private investors of Davy stockbrokers. One of the three draft internal reports into the DDDA, which were recently disclosed, reduced the value of the authority’s 26% in the site to zero. That has got to be wrong. How can 26% of €50 million be zero?