Bank of Ireland Wins Temporary EU Approval for State Support
Bank of Ireland Plc won temporary European Union approval to receive as much as 5,35 billion euros ($7,56 billion) from the Irish government.
The European Commission said it expects the bank to submit a new restructuring plan by the end of July before it can decide on final approval for the aid.
«The commission agrees that the measures are necessary to increase the bank’s solvency ratios and maintain confidence in the Irish financial markets,» the regulator said in an e-mailed statement today.
Bank of Ireland and Allied Irish Banks Plc (ALBK), Ireland’s two biggest lenders,» will require «close surveillance» from EU antitrust authorities because they will control the Irish market after a banking crisis forced the government to bail out several lenders, EU Competition Commissioner Joaquin Almunia said last month.
Bank of Ireland’s restructuring plan must show a return to long-term viability, an «adequate participation» in the restructuring costs by shareholders and subordinated debt holders and measures to limit the harm to competition caused by the state support, the EU said in the statement.
07/9/2011
— Filed under: Business
Tags: Bank of Ireland, restructuring plan
