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?6bn toxic debt - Taxpayers exposed to Anglo disaster | Irish Examiner
Forget the golden ten and the IL&P loans - all fades into insignificance when compared to the potential exposure of the Anglo loan book.
This morning's Examiner highlights the problems:
The PWC assessment of Anglo's toxic exposure was based on figures from last year.Anglo’s risk is concentrated on a small number of large developers, some with cash flow problems and concentrated interests.
€6bn worth of Anglo loans will be defaulted on in the next two years according to PwC. Anglo had no idea what its overall exposure to bad debts was. €9bn is linked to investments in the highly depressed American property market.
15 investors owe more than €500m to Anglo.
The prospects for Anglo’s larger loans depend a lot on the fate of retail and residential sites in north and south Dublin.
Whatever gloss and spin they try to put on the figures, the exposure to mothballed land-banks, non-performing retail hotel and residential developments is disastrous. We all know these sectors are feked.
Yesterday's reports have only confirmed our fears. The original PWC report also outlined the exposure of the other banks - we have not seen these figures. Even if the other institutions are only half as exposed as Anglo, then the Bank Guarantee is looking like a hole below the water-line in Ireland Inc.
The government is trying to bail out the mess with a collander when a salvage pump is required.
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