Stay connected:
View the article online at http://citywire.co.uk/wealth-manager/article/a460205
Ireland injects €3.7bn into Allied Irish Banks
Markets
by Daniel Grote on Dec 24, 2010 at 08:11
The Irish government has injected €3.7 billion (£3.14 billion) into Allied Irish Banks, effectively placing it under state control.
Ireland will use funds from its National Pension Reserve Fund (NPRF) to boost the bank’s core tier one capital to 8% ahead of the government’s year-end deadline.
The move will hand the NPRF a 93% stake in Allied Irish Banks when the bank completes the sale of its Polish interests to Santander.
The bank will move out of the main British and Irish stock markets on 26 January and apply for a listing on the enterprise market of the Irish exchange.
Irish finance minister Brian Lenihan (pictured) said the funding was a move of last resort.
‘The markets are not willing to invest in the Irish banks because they do not have confidence in them,’ he said.
‘We have to have a banking system in this country and it has to be brought into public ownership. I always made it clear that would be a last resort and we are now engaged in that last resort.’
News sponsored by:
Sponsored Video: Bringing it all back home
As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.
Today's top headlines
Investing for income in a changing environment
With talk on interest rates on the horizon, our latest roundtable debate covers income investing against a changing backdrop
More about this:
Look up the shares
Archive
On the road
Click here to find out more from the Audience Development team.
1 comment so far. Why not have your say?
Paul Renken
Dec 24, 2010 at 14:16
Fertile ground for new banking entities then?
report thisleave a comment
Please sign in here or register here to comment. It is free to register and only takes a minute or two.