EC ruling on AIB payments criticised

THE move by the European Commission to block AIB paying interest of €280 million to the state for its €3.5 billion capital injection could have serious implications for the banking sector and the Irish economy.

Kevin McConnell, head of research at Bloxham Stockbrokers, was commenting yesterday at the launch of the group’s latest review of the stock markets and of the economy.

He said the use of the phrase “unintended consequences” by the EC in relation to the ruling it has put in place was a cause of serious concern.