€4bn recapitalisation plan approved

THE European Commission has approved the €4 billion emergency recapitalisation of Anglo Irish Bank by the Government, saying it was necessary to remedy a serious disturbance in the country’s economy.

The commission said it recognised that the funding was urgent to preserve the financial stability of the bank, which is of systemic importance to the Irish financial markets.

The commission had to investigate the funding as it is considered state aid and concluded that the recapitalisation of the country’s third bank was appropriate to remedy Anglo’s solvency problems and maintain confidence in the Irish financial markets.