Opposition critical of Anglo 'bailout'

Opposition parties have again criticised the Government over its continued support of State-owned Anglo Irish Bank following the decision of the European Commission to approve a third emergency injection of funds.

The commission today approved Government plans to inject over €10 billion into the lender, in addition to the €4 billion injection of funds last year and a further €10.4 billion in March.

Fine Gael said the National Asset Management Agency (Nama) must stop buying loans from the bank as this is merely adding to the bill owed.

“It is intolerable that scarce taxpayer’s money is being continuously poured into a bank that will never lend a red cent to business and will form no part of Ireland’s economic recovery," said the party's enterprise spokesman Richard Bruton.

“It is now critical that Nama ceases purchasing loans from Anglo, because as the losses on these loans crystallise the need to pour more capital into the bank arises, merely adding to the problem and tightening the noose around the already overburdened taxpayers’ neck."

The Labour Party described Anglo as "Ireland's biggest ever money pit" and also warned of further taxpayer bailouts for the bank.

Given that Nama transfers are not due to be completed until early next year, "it is clear that the total bill for Anglo could get even higher," warned the party's transport spokesman Joe Costello.

"The Government has consistently gotten it wrong with regard to Anglo... Their figures have been constantly inaccurate from the original draft business plan published for Nama underestimating the cost to the taxpayer of the cost of the Anglo bailout," he added.

Elsewhere, Sinn Féin said the Government was "delusional to believe that pumping endless amounts of money into a zombie bank" will restore financial credibility.

“The ramifications of today’s decision of the European Commission are such that the amounts of capital that can be pumped into Anglo Irish surpass the €22 billion previously mentioned by the Minister for Finance," said the party's finance spokesman Arthur Morgan. "Essentially it is opening a can of worms where Anglo Irish will be subject to endless recapitalisations by taxpayers for whom Anglo Irish did nothing, while savaging essential services for ordinary people."