Cost of Ireland's Bank Bail-out to Hit €40 Billion

The increase in the bill to bail out Anglo-Irish bank and other stricken lenders will push the country's budget deficit up to 32 per cent of GDP, more than ten times the limit imposed on eurozone economies by Brussels.

Worries over the costs of rescuing the financial sector has lead to sharp rises in the premium Dublin must pay to borrow on international markets.

The Government is now hoping its strategy of transparency over the bail-out bill – which amounts to a fifth of the total wealth generated by the entire economy in a year – will win back investors and restore the flow of credit through the economy.'

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