Yesterdays “stress tests” saw the Irish banking sector receive a further cash injection of €24billion bringing the total cost of bailing out the banks to €70billion.
Yesterday marked the fifth attempt to recapitalise our banks: in the earliest days of the crisis in late 2008, it was expected that just €5.5 billion would be needed to plug the gap. This later became €11 billion, and then inched up to €35 billion by March 2010, and to €46 billion last September.
A worst-case economic scenario was outlined by the Central Bank and detailed that bad mortgage debts could total €9.5 billion between now and the end of 2013 and also suggested a capacity for a lot of repossessions.
Commenting on yesterdays events Central Bank Governor Patrick Honohan said the pumping of more taxpayers' cash into the banks "doesn't score highly on fairness", but the State was left with no choice but to rescue the banks once more.
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