THE State's stake in AIB is set to increase to at least 96pc.
The Central Bank told the lender it must raise another €5.3bn by the end of February -- and it can only get it from the State.
Market sources last night said it would be virtually impossible for AIB to raise any private money since the bank was worth less than €370m at the end of last week.
AIB will also have to provide the regulator with a plan to dispose of assets.
Its UK division, which includes First Trust in the North and business bank AIB GB, is likely to go on the block, as are assets in eastern Europe.