Irish govt plans $7 bln bank bailout: Papers

None of the three banks were immediately available to comment.

Irish govt plans $7 bln bank bailout: Papers

The Irish government is planning to inject a total of around 5 billion euros ($6.98 billion) into the country's three main banks in the first phase of a recapitalisation process, two Irish newspapers said on Sunday.

The move would involve an effective nationalisation of Anglo Irish Bank, which has been at the centre of a loans scandal, and significant investment in the two biggest financial institutions, Allied Irish Banks (AIB) and Bank of Ireland, the papers said, without specifying sources.

None of the three banks were immediately available to comment.

The Irish edition of The Sunday Times and the Dublin-based Sunday Business Post both said the government would put 1 billion euros into Anglo Irish in return for a stake of up to 80 percent, and invest 2 billion each into AIB and Bank of Ireland.

Private investors would be invited to subscribe for 1 billion of new shares in each of the two big banks, The Sunday Times said, and if these shares were not taken up the government would undertake to buy them, bringing its total outlay to some 7 billion euros.

An official announcement on the recapitalisation plans is expected shortly, either later on Sunday or early next week.


Reuters

Last Mod: 21 Aralık 2008, 14:43
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