EU clears billions in state aid for banks

THE EU yesterday sanctioned billions in state aid for Irish banks, including Anglo Irish Bank and Irish Nationwide.

And AIB’s junior bondholders will have to take a big hit in a future restructuring, the European Commission warned, as it rubber-stamped the agreement.

Under the deal, the European Commission has sanctioned €4.9 billion in recapitalisation for Anglo, as well as providing guarantees for some deals done in the past by the bank.