Brussels, 22/12/2010 (Agence Europe) - On Monday 21 December, the European Commission authorised new state aid emergency bailouts of three Irish banks whose dire financial straits have led to an official request for aid by the Irish government. The Commission says the aid complies with EU rules. For Anglo Irish Bank, the Commission has approved a recapitalisation of up to €4.946 billion and a guarantee covering certain off-balance sheet transactions. AIB has received bailouts totalling €29.3bn thus far. The Commission also approved a €2.7bn recapitalisation of Irish Nationwide Building Society (INBS). Thus far, INBS has received €5.4bn in capital. Finally, the Commission has endorsed a recapitalisation of Allied Irish Bank covering its capital requirements to the end of 2010 to the tune of €3.7bn and the capital requirements following from the Programme for Support agreed between the Irish authorities, the IMF and the EU, to the tune of €6.1bn.
The Commission explains that it “found that the aid measures are indispensable to remedy the banks' financial difficulties and maintain confidence in the Irish financial markets. The measures are conditional on the submission of a revised restructuring plan for Allied Irish Bank and plans for the resolution of Anglo Irish Bank and INBS. The plans must ensure (i) a return to long term viability (or an orderly resolution) of the banks concerned, (ii) adequate burden sharing by shareholders and subordinated debt holders and (iii) proper measures to limit the distortion of competition.” (M.B./transl.fl)