Govt commits further €2bn to Anglo

Monday 31 May 2010 22.21
Anglo Irish Bank - Further €2bn committed by Govt
Anglo Irish Bank - Further €2bn committed by Govt

The Government has committed another €2bn in funding to Anglo Irish Bank.

The move comes as Anglo's restructuring plan was submitted to the European Commission today.

A statement from the Department of Finance said the bank needed new funds because of the losses it had taken on the loans transferred to the National Asset Management Agency and because of further losses on its remaining loans.

On 31 March, Minister for Finance Brian Lenihan provided €8.3bn to Anglo, on top of the €4bn the Government put into the bank last year.

At the time, the Minister indicated that the bank could need another €10bn. The €2bn announced today is part of that €10bn.

The €8.3bn, plus today's €2bn, are being given in the form of a promissory note, which means the payments to the bank will be stretched over a number of years.

The Department of Finance said the bank's future would be determined by talks between it, the Commission and the bank on its restructuring plan.

It said Mr Lenihan's aim was to minimise the cost to the taxpayer of restructuring Anglo.