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Tue 03 Mar 2010Irish banks may require up to €32 billion to cover losses

Irish banks require an estimated €22 billion to cover losses from soured property loans and this total may rise by a further €10 billion depending on the extent of impaired loans at Anglo Irish Bank, the Dáil was told today.

The true scale of the “black hole” left in the sector by toxic property debt was laid bare today as Nama confirmed the initial tranche of bad loans would be acquired at a discount of 47 per cent, substantially more than the Government’s initial estimate of 30 per cent.

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