The Irish loans have played a crucial role to roll down the overall performance of the Royal Bank of Scotland and forced the RBS to bare losses, more than double, during the first quarter of the year, in contrast to same time period of last year.

The bank is around 83% government owned and announced an loss of £528 million for the 3 months to March 31, a significant fluctuation when compared to a loss of £248 million , for the same period a year earlier.

The Chief Executive Officer of the RBS, Stephen Hester, observed the results as outcome of "progress continuing" and said: "The uncertainties around the outcome of the PPI action mean that, at this time, the group is unable reliably to estimate any potential financial liability, although it could prove to be material”.

The total impairment charges for the first quarter were reported £1.95 billion with a huge contribution from the bank’s encounter with the tired Irish economy.

However, the RBS is believed make an announcement in upcoming week on the matter that it will appeal against a high court ruling or not, that spoke against the British Bankers' Association's legal challenge on mis-sold PPI policies.