The chief executive of Anglo Irish Bank has said the bank guarantee will have to be extended because the financial system has not yet stabilised.
In an interview with RTÉ News, Mike Aynsley said the bank also wanted to put Arnotts back on an even keel without creating further employment problems and manage a recovery of the business. He said this was likely to involve the bank's taking over the company and selling it.
Watch the full interview here
Mr Aynsley says he wants to try to focus Anglo on the future. The bank's chief executive says he can understand why many members of the public are so annoyed with the bank. But he says the 'constant beating' of the bank in the media simply reinforces negative perceptions about Anglo.
He says the public are not getting time to get over what happened at the bank.
Mr Aynsley stresses that he has brought in a new management team with international experience to stabilise the bank and create a viable lender.
The Anglo chief defended his plan to split the bank into a 'good' and 'bad' bank, saying closing the bank down would not get rid of the problems. He said a closure would only transfer its loans to other parties, while he believed most of the €50 billion of foreign funding the bank currently had would leave if Anglo were closed down. Mr Aynsley also said there was a 'rump' of loans on good quality assets, including Arnotts.
Mr Aynsley would not go into detail on its talks with the Quinn Group, but he said Anglo would work with the business to recover the money it borrowed from the bank.
Cost will depend on NAMA - Aynsley
Mr Aynsley also said he was frustrated that he could not give a final figure of what the cost to the taxpayer of keeping Anglo afloat will be. He said this would depend on the price paid by NAMA for loans which will transfer from the bank.
He said another €1.4 billion of loans was due to go to NAMA this weekend. These will be the first of around €8 billion of loans which make up the second batch of Anglo loans to go to NAMA.
After talks with NAMA, Mr Aynsley said there were some Anglo loans which may not now be transferred to the agency. He said this could reduce the final figure for Anglo loans going to NAMA by between €2 billion and €4 billion.
Asked about loans to former Anglo directors and employees, he said the bank would pursue every option to try to get the money back.