Monday 5 December 2016

Europe approves aid for Irish banks

Published 21/12/2010 | 14:41

EU Competition Commissioner Joaquin Almunia. Photo: Getty Images
EU Competition Commissioner Joaquin Almunia. Photo: Getty Images

Emergency state aid for three Irish banks has been approved by the European Commission.

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Brussels authorised recapitalisations of €4.96bn for Anglo Irish, €2.7bn for Irish Nationwide Building Society (INBS) and up to €9.8bn for Allied Irish Bank.

A Commission statement said the emergency measures did not prejudice any future decisions expected next year on the restructuring of AIB, or on "orderly resolution" for Anglo Irish and INBS.

The final decision on AIB will depend on the Commission being satisfied that the bank will be commercially viable in the long term without further injections of taxpayers' money and with a "significant contribution" by the bank's shareholders, the statement went on.

EU Competition Commissioner Joaquin Almunia said that despite the "profound" difficulties being faced by the Irish banking sector, the Commission would continue applying EU state aid rules to the support Irish banks are receiving.

He continued: "The measures approved are necessary to ensure that these institutions meet their respective obligations and will help to preserve financial stability in Ireland."

Press Association

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