Losses at Anglo were "somewhat beyond expectation", the Minister for Finance Brian Lenihan has said.
Mr Lenihan made the comments during an appearance on the Week In Politicsprogramme on RTÉ last night.
Sunday newspaper reports suggested Anglo would need a fresh State injection of €3.5 billion.
“Liquidating it here and now is just not possible for the Government,” he added last night. Anglo will announce half-year results this week.
Mr Lenihan also said last night the Government faces “enormous practical difficulties” in the setting up of its “bad bank” scheme to deal with the risky property loans of financial institutions.
Mr Lenihan said legislation to establish the National Asset Management Agency (NAMA) - which will assume up to €90 billion of loans and assets - will be ready by July and said the Dáil could be recalled from its summer recess to enact it.
The crucial discount to be applied to the assets has yet to be decided and the finance minister's comments followed a recent warning from the head of Ireland's debt management office that legal challenges over the scheme's details are likely.
“There are enormous practical difficulties with it and that is why we are taking our time in doing the preparatory work with the banks and in preparing legislation, which we intend to publish in July,” Mr Lenihan told the programme on RTÉ.
“We will call back the house over the summer if necessary to enact the legislation.”
“It may be (published before parliament rises) but I'm allowing myself the timescale of July because we want to get this right," he said, adding that if the house was recalled for a week, it would have ample time to examine the legislation.
NAMA, announced in April's emergency budget, will force lenders to write off the discount on loans, potentially prompting further capital injections from the state.
The country's two largest banks, Allied Irish Banks and Bank of Ireland have already received €3.5 billion of state capital, while Anglo Irish Bank was nationalised earlier this year.
Reuters/ Bloomberg