Belfast Telegraph

Republic of Ireland is 'heading for bailout profit'

By Clodagh Sheehy

The Republic of Ireland could make a €2bn (£1.4bn) profit from Nama and the sale of shares in bailed out Bank of Ireland and Allied Irish Banks (AIB), the deputy head of its Finance Department said.

Ann Nolan told the Banking Inquiry in Dublin that the long-term cost of the Bank Guarantee would be associated with Anglo Irish bank but "the country will probably get its money back on the 'living banks'. "We won't get anything back from Anglo but we might even make a small profit here and there, you know, €1bn on Nama €1bn maybe on maybe AIB… Bank of Ireland shares," she said.

"We might make a bit of a profit eventually on AIB, I don't know, it depends on how we sell them and how the timing goes," she said in response to questions from Fine Gael TD Kieran O'Donnell.

Nationalising Anglo Irish Bank earlier would not have made a difference to the outcome, she said.

Ireland could have saved about €3bn (£2.1bn) by burning Anglo Irish Bank bondholders but the US had used its veto at the IMF to stop this, the inquiry was told.

"I certainly think, if there had been no veto, burden-sharing would have happened," she added.

Belfast Telegraph