The Impact of Financial Sector Support on the Public Finances in Ireland and the EU
Linda Kane and
Additional contact information
Rónán Hickey: Central Bank of Ireland
Linda Kane: Central Bank of Ireland
Diarmaid Smyth: Central Bank of Ireland
No 12/EL/17, Economic Letters from Central Bank of Ireland
Drawing on a pan-European database, this Letter takes a comprehensive look at the direct impact that financial sector support measures had on the fiscal position in Ireland from 2008 to 2016. At end-2016, it is estimated that these support measures added approximately €58 billion (21 per cent of GDP and 31 per cent of GNI*) to the stock of gross government debt, a figure which vastly exceeds the impact of the crisis in the EU. The final cost of the support on the public finances will depend on how various banking positions are unwound and the cumulative cost of servicing the related borrowing. Securing the best possible return on remaining banking investments and managing the transition to lower and more sustainable levels of public debt will remain a key challenge going forward.
New Economics Papers: this item is included in nep-eec
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
https://www.centralbank.ie/docs/default-source/pub ... -smyth).pdf?sfvrsn=2 (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:cbi:ecolet:12/el/17
Access Statistics for this paper
More papers in Economic Letters from Central Bank of Ireland Contact information at EDIRC.
Bibliographic data for series maintained by Fiona Farrelly ().