EBS ‘will need €300m from state’

EBS Building Society says it will need up to €300 million of a capital injection from the Government after it transfers more than €500m in bad loans to the National Asset Management Agency (NAMA).

EBS said it could transfer close to €1bn to NAMA as other loans to property developers, not directly linked to land or property investments, are also taken under the control of the bad bank.

Fergus Murphy, chiefexecutive of the EBS, said the society will need €300m in fresh capital irrespective of whether its loans are discounted at 10% or 40%.