DUBLIN (TheStreet) -- Anglo Irish Bank's bailout could cost €34 billion ($46.3 billion) under a worst-case scenario, the Central Bank of Ireland said Thursday.
Anglo Irish, under a base case or central scenario, would need €29.3 billion. An additional €5 billion could be required if unexpected further losses are incurred, the Central Bank estimates.
Anglo Irish, the bank at the center of Ireland's financial crisis, already has received €23 billion to help prop it up.
Alllied Irish Bank (AIB), another troubled lender, will need to raise an additional €3 billion by Dec. 31, the Central Bank said in a press statement.In an interview with the Financial Times, Finance Minister Brian Lenihan said Ireland had no choice but to act. "Any Anglo failure would bring down the sovereign. It is systemically important not because of any intrinsic merit in the bank, but because of its size relative to the national balance sheet. No country could contemplate the failure of such an institution," he said. -- Written by Joseph Woelfel
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