Irish banks may need as much as €32 billion for losses

In what was billed as one of the most important speeches in the history of the state, Irish finance minister Brian Lenihan on Tuesday (30 March) revealed that the country's banks could face a capital shortfall of €32 billion.

The sum, far higher than expected, is the equivalent of about 20 percent of Ireland's GDP, with around €22 billion needed to cover losses from bad property loans and a possible further €10 billion, depending on the extent of sour loans at Anglo Irish Bank.

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