# How much have we paid to support Irish banks



## cremeegg (25 May 2013)

Genuine question ? How much have we paid already to support Irish banks and to what extent are the new taxes USC, property etc. going to support the banks.

I say genuine question, but to be honest I think I know the answer, but it is not what people think it i.e. Lots and Lots.

I understand that we have in fact paid nothing (plus or minus part of the NPR).

This fundamental fact is lost in most discussion about the economy or am I mistaken?


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## hennessy (4 Jul 2013)

I recon youve seen nothing yet. The Banks  will need further capitalisation/bailouts and where is the money going to come from ? You and I. Nobody would be crazy enough to lend Ireland Inc the money. Get your dosh out now then, I say. The Banks are the elephant in the room for this country and I dont see any light at the end of the tunnel.


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## Protocol (4 Jul 2013)

See here on banking recapitalisation so far:

http://economic-incentives.blogspot.ie/2013/02/deficit-debt-and-expenditure-impacting.html


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## Protocol (4 Jul 2013)

64-65 bn in banking recapitalisation so far.

Of this, approx 40bn was borrowed.

The balance was invested by the NPRF selling other assets and putting cash into the banks.

The worse aspect of it is the 30.6bn into Anglo and INBS and the 4bn cash into Anglo.


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## Protocol (4 Jul 2013)

cremeegg said:


> Genuine question ? How much have we paid already to support Irish banks and to what extent are the new taxes USC, property etc. going to support the banks.


 

The USC is not a new tax, in that it replaced two previous taxes - the income levy and the health levy.

Indeed, I pay *less* in USC, than I paid in levies.


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## Protocol (4 Jul 2013)

cremeegg said:


> Genuine question ? How much have we paid already to support Irish banks and to what extent are the new taxes USC, property etc. going to support the banks.


 
The 64-65bn into the banks was financed by selling existing State assets in the NPRF and by borrowing.

So, in that sense, no new taxes were needed.

However, the interest costs on the 65bn must be raised by taxes.


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