Anglo Irish Bank chairman Alan Dukes today stood over claims that the banks will need up to €50 billion in recapitalisation, and that the National Asset Management Agency (Nama) would require funding of €75 billion.
Speaking on Newstalk's Breakfast programme this morning, Mr Dukes said an extra €15 billion could be needed to prop up the banks, in addition to the €35 billion already provided for under the bailout plan, but said there was the chance of recouping that money in the future.
He repeated claims that €75 billion would be required over 10 years to fund Nama.
"Over a 10 year period, we reckon there's a need for funding in the region of €75 billion," he said. "That's to fund the warehousing, so to speak, of those assets until the point comes where you can sell them. It's very difficult to say what kind of a return there will be on that."
The business plan for Nama forecast the agency would make a net gain over the 10 year period.
"I hope that's true," Mr Dukes said. "If it's the case, then that €75 billion over that period would be self funding."
Nama yesterday rejected the claims, which Mr Dukes originally made in Cork on Tuesday. The agency said it had already acquired loans with a value of €71.2 billion for €30.2 billion and will take on an additional €5 billion under the original Nama plan.
As part of the Nama Amendment Bill, recently published by the Government, Nama can also now acquire land and development loans of less than €20 million from Bank of Ireland and AIB. Some €12 billion in additional loans are covered by this.
"The overall consideration for the €88 billion portfolio is therefore likely to be €37 billion approximately," the agency said.
Mr Dukes said today the solution to the financial crisis must be Europe-wide.
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