AIB hands over plan to Europe

ALLIED IRISH BANK gave its restructuring plan to the European Commission as part of the agreed state bail-out.

Brussels is examining plans for banks that have signed up for recapitalisation – including AIB, which is getting an injection of €3.5 billion, to ensure government money does not give them an unfair advantage.

Over the coming weeks, Brussels will look at the viability of the bank’s future, whether its shareholders are taking some of the burden and whether the group hopes to invest money back into the markets to boost competition.

AIB’s plan includes how it hopes to avoid complete state ownership and possible moves to sell off its stake in banks in Poland and the US, according to reports. The commission expects to respond to the plan within six months.

Bank of Ireland submitted its restructuring plan to Brussels in September, while Anglo Irish Bank must do so by the end of this month.