Irish Life & Permanent is expected to move into government ownership The true cost of the Irish banking crisis is expected to be revealed later when the outcome of government stress tests on banks is released.
The results are expected to show they need an extra 30bn euros (£26.3bn).
The Irish Central Bank has tested four lenders – Allied Irish Banks, Bank of Ireland, Educational Building Society and the Irish Life and Permanent.
The latest capital injection will come from the EU-IMF bail-out money agreed in November.
It will take the total amount poured into the Irish banks since the financial crisis began to approximately 73bn euros (£64.1bn).
Once the results of the tests are released, Irish Life and Permanent, the country’s largest provider of mortgages and private pensions, is expected to move into government ownership.
That will give the state an interest in all six Irish financial institutions.
The 85bn euros (£74.6bn) bail-out deal at the end of last year was in response to the massive losses run up by Irish banks as well as the government’s own swelling budget deficit.
The deal divided the money into 30bn euros (£26.3bn) for propping up the banking system and 50bn euros (£43.9bn) to fund day-to-day government spending.
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