Belfast Telegraph

Anglo-Irish cash injection approved

The European Commission has cleared the way for the Irish Government to pump another 10 billion euro into nationalised Anglo-Irish Bank.

The rogue lender, put into state hands just over a year ago, is expected to announce the biggest corporate losses in Irish history of about 12 billion euro as Brussels officials said the cash injection was needed for financial stability.

The Commission said it was investigating the total amount being pumped into the collapsed bank after 4 billion euro (£3.5 billion) of taxpayers' money was lodged last year.

Commission Vice-President for Competition Joaquin Almunia said 2.7 billion euro (£2.4 billion) recapitalisation of building society Irish Nationwide had also been approved.

"There is no doubt that both Anglo Irish Bank and INBS (Irish Nationwide Building Society) need a significant recapitalisation to meet their obligations," he said.

"The measures are also necessary to preserve financial stability in Ireland.

"However, INBS needs to establish a viable restructuring plan and Anglo Irish Bank has to restructure profoundly in a way that effectively tackles the weaknesses of the past business model and ensures a sustainable future without continued State support."

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