RPT-UPDATE 1-Irish c.bank: bank sector bailout still manageable

* Irish debt spreads eased after strong demand at auction

* Some investors still uneasy about Ireland govt debt
burden
(Adds quotes, background, changes slug/keywords)

TOKYO, Aug 20 (BestGrowthStock) – Irish government debt spreads
over German sovereign debt are still uncomfortably high but the
cost of bailing out the country’s ailing lenders will not
increase debt to an unmanageable level, the governor of
Ireland’s central bank said.

“Spreads are still higher than I would like to see,”
Patrick Honohan told reporters in Tokyo on Friday when asked
about the results of an Irish debt auction this week.

“The big picture is estimates of our net fiscal cost (for
the banking sector) is still manageable. These percentages
don’t lift the path of government debt into an unmanageable
range,” said Honohan, who is also a member of the European
Central Bank’s governing council.

Irish and Spanish debt auctions attracted strong demand on
Tuesday, allaying concerns about the pressure on costs of
funding for euro zone countries saddled with high debt in the
wake of Greece’s sovereign debt crisis. [ID:nLDE67G0M1]

But some investors are still on edge over the cost Dublin
faces in bailing out its lenders after it emerged last week
that the government may need to pump more capital into
nationalised Anglo Irish Bank [ANGIB.UL] than previously
expected. [ID:nLDE67910W]

Honohan reiterated comments he made earlier this week that
the net cost to the Irish government of helping Anglo Irish
Bank may be about 22 to 25 billion euros ($28-32 billion).

He also said this week that the cost of bailing out
state-run Irish Nationwide (INBS) [IRNBS.UL] home loan company
could rise from the 2.7 billion euros already promised to it.
[ID:nLDE67G1CM]
($1=.7803 Euro)
(Reporting by Stanley White; Editing by Chris Gallagher)

RPT-UPDATE 1-Irish c.bank: bank sector bailout still manageable