‘Recapitalisation likely,’ says Ryan

THE Government is likely to have to inject further capital into AIB and Bank of Ireland as part of its “bad bank” plan to cleanse the sector of soured assets, a government minister said yesterday.

The State already has 25% voting rights in Bank of Ireland after a €3.5 billion capital injection through preference shares, while AIB investors will next month vote on a similar package.

“We will probably have to go in and recapitalise,” Eamon Ryan, the Minister for Communications, Energy and Natural Resources, said.