Toxic loans transferred to Ireland’s National Asset Management Agency, its bad bank, may be worth half their stated value, according to a leaked U.S. embassy cable. An official of Ireland’s Department of Finance said the loans NAMA took would be discounted by around 50%, meaning a loss of nearly €40 billion ($58.31 billion) for the banks, substantially greater than the €24 billion ($35 billion) projected by the International Monetary Fund. The Irish government originally estimated it would need up to €7 billion ($10.21 billion) in new capital to support its banking system, but now it appears the final figure will be 10 times higher.

Click here to read the story from the Belfast Telegraph.