Coverage of the full cost of Anglo Irish Bank - as it happened.

* Full cost of Anglo Irish Bank to be at least €29.3bn
* AIB to receive an additional €3bn
* Irish Nationwide to receive a further €2.7bn

21.57 Listen to the views of some members of the public

20.22 Watch the Six One News coverage of today's developments.

19:12 The Dáil debate on the cost of the bank bailout has ended. It will resume on Tuesday.

19:07 RTÉ News understands that the Swedish Finance Minister, Anders Borg, raised questions about Ireland's ability to find new tax revenues as part of the Government's four-year programme to reduce the Budget deficit to 3% of GDP.

It is understood finance ministers at the informal ECOFIN meeting in Brussels acknowledged that this was due to the strain the economy was under.

An EU official said, however, that both tax increases and spending cuts would be involved as part of the deficit cutting programme.

There would, she said, be 'close contacts' between the Commission and the Government and the ECB. These steps would help the Government show it has a 'credible plan'.

19:03 Speaking on RTÉ's Six One News, Taoiseach Brian Cowen said the fiscal situation faced by the country is not sustainable.

Mr Cowen said the Government had to set out a four-year budgetary framework for the sake of certainty and to set out a credible pathway.

He said those who lend Ireland money had to be convinced. Watch the full interview here.

17:55 Environment Minister John Gormley has said that like most people, the potential bank bailout figures 'stuck in his craw' and were appalling.

John Gormley

John Gormley said the Government was acting on the advice of the Central Bank Governor and the Financial Regulator who firmly believed that supporting the banks was the best way forward in getting the country up and running again.

The minister said there was no talk of a General Election and that the Government would continue to do its best under very difficult circumstances.

17:30 The trade union UNITE has condemned the announcement of a potential €35bn Anglo Irish Bank bailout as a black stain on the country's history and as a decision that will condemn a generation to a high-level unemployment.

17:24 The interest rate demanded by investors to lend money to Ireland for ten years was 6.76%, down from 6.9% at the start of the day.

The closely watched gap between Irish and German borrowing costs also narrowed.

AIB shares ended down just over 8% at 51c, they had earlier dropped as much as 30% after the Finance Minister said the bank would need more funding and that its chairman and managing director would step down by the end of the year.

17:19 The Seanad adjourned today at 2.15pm and will not meet again until next Wednesday at 2.30pm.

16:32 In a statement, IBOA General Secretary Larry Broderick said this morning's announcements that AIB will require an additional €3bn 'should now extinguish the vain hope of avoiding majority State ownership which seems to have been key to the AIB Board's policy of disposing of many of its prized assets'.

16.25 A short time ago, the interest rate demanded by investors to lend money to Ireland for ten years was at 6.74% - down from 6.9% at the start of the day.

Meanwhile, AIB shares won back some of their earlier heavy losses to be down 7.5% in Dublin a short time ago.

16.07 The amount of dated subordinated and senior debt, issued before September 2008, which will remain on the books of the six covered institutions is as follows: subordinated debt - €5.3bn, senior debt - €25.88bn

16.00 The Dáil has been told that 43 directors and 31 senior executives have vacated their positions in the six covered financial institutions since 2008.

15.58 Minister Lenihan has told the Dáil that there were no proposals before his Department to activate the inability to pay clause in the Croke Park Agreement.

The issue was raised by Deputy Noonan, who asked how near the Government was to 'pushing the button' on the clause.

Mr Lenihan acknowledged there was such a clause, but indicated there were no proposals before his Department to activate it.

15.50 Irish borrowing costs fell on bond markets this afternoon after this morning's announcements on the banks.

A short time ago, the interest rate demanded by investors to lend money to Ireland for 10 years was at 6.7% - this morning they had stood at 6.9%

Meanwhile, AIB shares were down over 6.5% in Dublin, having been down as much as 30% earlier. This came after the Finance Minister said the bank would need more funding, and that its chairman and managing director would step down by the end of the year.

15.35 Minister Lenihan said that Ireland's economic recovery would be 'gradual'.

15.33 Minister Lenihan said an adjustment above €3bn in cuts will be required in Budget 2011 but he declined to go into any further detail.

15.30 Questions to Minister for Finance Brian Lenihan now taking place in the Dáil.

15.25 In a statement, Fine Gael Spokesman on Finance Michael Noonan said Minister Lenihan's banking policy 'has failed with catastrophic consequences'.

15.15 Speaking in the Dáil, Minister for Communications, Energy and Natural Resources Eamon Ryan said one of the benefits from what has gone through today is that we are coming to the end of this process.

The Minister said the legacy of Anglo's banking system would be 'scarred into our country'.

Responding to a question, the Minister said the politicians in power at the time, the financial regulator and the members of banks boards all bear some responsibility for what has happened.

Minister Ryan said we will make our way out of the difficulties were are in.

He said he believed the broad approach was the correct one.


14.51 A statement from eurozone finance ministers, meeting in Brussels, described today's banks statement as an 'important and helpful clarification of the situation'.

The ministers also welcomed the Government's 'unequivocal' commitment to bring its deficit into line with EU rules by the target of 2014.

14.48 Irish borrowing costs fell on bond markets this afternoon after this morning's announcements on the banks.

A short time ago, the interest rate demanded by investors to lend money to Ireland for ten years was at 6.71%, while the closely watched gap between Irish and German costs had narrowed.

Meanwhile, AIB shares were down around 15% in Dublin, having been down as much as 30% earlier.

This came after the Finance Minister said the bank would need more funding, and that its chairman and managing director would step down by the end of the year.

14.45 Speaking on the News At One, Brian Cowen said the Government remains on target to reduce the Budget deficit to 3% by 2014.

14.23 Listen back to News At One interviews with Taoiseach Brian Cowen, Central Bank Governor Patrick Honohan and Fine Gael Deputy Leader Dr James Reilly.

13.54 '€34bn figure was on Financial Times website last night' Joan Burton tells Brian Lenihan in the Dáil. She wants to know why the figure was released to foreign media first.

13.49 Fine Gael's Finance Spokesman Michael Noonan said the Government's decision to cancel next month's bond auction was because 'our sovereign trade worthiness was gone'.

Deputy Noonan accused the Minister for Finance of putting the sovereign at risk to save a failed financial institution.

Referring to an Irish Times headline asking if Anglo was too big to fail, Deputy Noonan said it was too big to save and the Government shouldn't have gone there and certainly shouldn't have protected all bond holders.

13.41 Finance Minister Brian Lenihan has told the Dáil that the owners of what are known as subordinated bonds, who lent their money to Anglo Irish Bank, will share the losses incurred by that bank.

He said that, legally, there was a doubt that what are termed senior bond holders could be made to share that pain - unless the same pain was inflicted on all depositors in Anglo.

But subordinated bond holders could be made to share the burden.

Legislation to permit this would be published later this year.

13.26 Taoiseach Brian Cowen tells RTÉ's News At One that 'we have to get on with dealing with the realities, horrendous as they are.'

13.24 Irish borrowing costs fell slightly on bond markets this morning after the announcements on the banks.

A short time ago, the interest rate demanded by investors to lend money to Ireland for 10 years was at 6.77%. The closely watched gap between Irish and German costs was little changed compared with yesterday.

Meanwhile, AIB shares dropped by almost 30% to 39 cent in Dublin after the Finance Minister said the bank would need more funding, and that its chairman and managing director would step down by the end of the year.

13.21 €3bn of cuts for next year would not now be enough to enable Ireland to reach its targets for cutting the country's deficit, says the Central Bank Governor.

13.19 'The future of the banks in Ireland is supporting the customer,' insists Patrick Honohan.

13.15 Patrick Honohan told RTÉ's News at One that paying the costs for Anglo Irish Bank was 'painful' but manageable. He also said he believed the policies being followed were right.

13.12 Central Bank Governor Patrick Honohan LIVE NOW on News At One

12.49 If you missed RTÉ News' special programme, presented by Bryan Dobson this morning, you can watch it back in full.

12.26 European Central Bank President Jean-Claude Trichet has said the ECB will concentrate on discussions with the Irish authorities on the development of Ireland's multi-annual strategy.

Mr Trichet said what is absolutely key for the ECB is the credibility and the delivery of the Government’s commitment to correct the excessive deficit by 2014, as had been previously agreed.

The ECB President was speaking on the sidelines of a meeting of eurozone finance ministers.

12.22 Taoiseach Brian Cowen will also appear on News At One.

12.21 RTÉ reporters and correspondents have been busy with their calculators. Their latest offering says €29.3bn would run NASA for two years.

12.17 If you'd like to read European Union Competition Chief Joaquin Almunia's statement in full click here.

12.11 Watch an interview with Brian Lenihan and his press conference at Government Buildings this morning.

11.55 So, what else could you buy with €29.3bn?

• It would buy 50 versions of the Burj Khalifa, the world's tallest building.

• It would buy 126 A380 super jumbo aircraft.

• It would build 44 copies of the Shannon Tunnel in Limerick.

• It would cover 74 new terminals at Dublin Airport.

• You could build 44 new National Children's Hospitals.

11.50 Finance Minister Brian Lenihan has indicated that the Government will have to bring in a harsher Budget in December than originally planned.

The Government had said it needed to find savings of €3bn in this year's Budget as part of a plan to reduce the deficit to below 3% of GDP by 2014.

However, the Minister said this morning that the €3bn outlined in the Stability and Growth Pact was ‘an absolute minimum’.

Minister Lenihan said that in light of the emerging data, this figure of €3bn would now have ‘to be upped’ and would require a significant adjustment this year.

11.40 Irish borrowing costs continue to ease on bond markets today after the announcements on the banks.

The interest rate demanded by investors to lend money to Ireland for ten years was at 6.77%, down from 6.9% earlier. AIB shares have dropped almost 30%.

11.39 Fine Gael Finance Spokesman Michael Noonan has claimed the Government has failed in its primary duty to protect the State's creditworthiness.

Mr Noonan told reporters that far from being too big to fail, Anglo Irish Bank had proved too big to save, and the Government’s efforts to do so had put the country's creditworthiness at risk.

Proof of that, he said, could be seen in the fact the country could not now afford to go to the bond markets.

Mr Noonan insisted that while the Government might be fully funded, this decision would make it more difficult for commercial banks to raise money and would mean continued credit restrictions and ultimately job losses.

He said a New York Times headline had asked 'can one bank sink a country?'. He said Anglo had come ‘damn close to it’.

Asked about the Government’s proposed four-year plan for the economy, the Limerick East TD said the Coalition was coming to the end of its days and had no mandate to make plans for the next four years.

11.36 The European Union Competition Chief Joaquin Almunia has welcomed the 'clarity' provided by Ireland regarding the State aid provided to the banks.

11.26 The Sinn Féin motion of no confidence in the Minister for Finance will only be debated if Fine Gael or Labour back it and give it time.

11.17 The Dáil has resumed the debate on a Fine Gael motion on the economy.

Party whips are meeting to arrange the extra time for the Anglo debate, which is now due to start at 12:45pm.

11.16 The Governor of the Central Bank, Patrick Honohan, will be appearing live on RTÉ's News At One at lunchtime.

10.55 The Taoiseach has told the Dáil there will be more time set aside to discuss the Anglo figures. A three-hour debate will begin from 12.30pm. There will also be time set aside next week.

10.53 Labour leader Eamon Gilmore said the Anglo bill is the price of failure, the price of the property bubble, the price of bad government, and it is the bill that Fianna Fáil have left the people of Ireland.

Sinn Féin's Caoimhghín Ó Caoláin said his party has tabled a motion of no confidence in the Minister for Finance, Brian Lenihan.

10.51 In the Dáil, the cost of the Anglo bail out has been raised by the Opposition leaders who have criticised the amount of time being set aside to debate the Anglo figures.

Fine Gael leader Enda Kenny said Ireland is waking up to another national crisis.

He said the people now find themselves owning another bank while all they want to own is their own homes. Mr Kenny said the fact of the matter is that the govt's banking strategy is now in shreds.

He also said the credibility of the Government, the Taoiseach and the Finance Minister in respect of the banks is now in tatters.

He said the failure of the banking strategy is now threatening Ireland.

10.50 On the question of whether the Government could have moved quicker in resolving the banking crisis, Mr Lenihan said of course he would like to have seen progress much more quickly.

But Ireland has a small banking system in a small economy and does not have the tools at its disposal that the British government has through the Bank of England, he said.

Ireland does have the European Central Bank, which has been a strong bulwark, he added.

But the State did not have great options to move at a faster pace, he claimed.

Mr Lenihan said NAMA was a much more aggressive and ambitious option than what had been chosen in other states. But he said it had involved going into the banks, looking at the loan books and making an independent valuation of them, and this was necessarily a protracted operation.

But today the Government has brought that process to conclusion, he said, and it couldn't have gone any faster if it had wanted to bring a credible solution to the problems.

10.45 Irish borrowing costs continue to fall on bond markets this morning after the announcements on the banks.

The interest rate demanded by investors to lend money to Ireland for ten years was at 6.77%, down from 6.9% earlier. The gap between Irish and German costs was steady compared with yesterday.

Meanwhile, AIB shares dropped over 25% after the Finance Minister said the bank would need more funding and said both its Chairman and Managing director will step down by the end of the year.

10:35 Asked why the State had decided not to go ahead with bond auctions in October, November & December, Finance Minister Brian Lenihan said the NTMA had advised against the auctions because of the very high bond spread.

He said the four-year budgetary framework would be published in November and the markets would need to time and space to digest those plans, the plans announced today and see the fiscal adjustments being implemented.

Traditionally there is no auction in December, he added.

10.33 The Dáil is to debate the Anglo affair for three hours, beginning at lunchtime.

In an unusual move, Taoiseach Brian Cowen has turned up to take the Order of Business in the House. Normally, he does not attend on Thursdays.