Financial institutions express gratitude for billions

THE country’s financial institutions moved quickly to offer their gratitude to the Government for offering them billions of euro to ensure their survival.

Finance Minister Brian Lenihan has indicated the Government would have majority share holdings in AIB, EBS and Irish Nationwide following the major recapitalisation programme.

EBS, which needs a capital injection of €875 million, said it was “extremely grateful” to the Government for the financial support.

“EBS will seek to reduce this capital amount of €875m through a range of programmes and strategies,” a statement said.

Irish Nationwide chief executive Gerry McGinn said his institution was also grateful but warned it will shortly post “significant losses for 2009”

“This injection of capital will cover both the losses for 2009 and the uncertainty we will have over the extent of discount emanating from the transfer of impaired assets to NAMA,” he said.

Irish Nationwide requires €2.6bn to meet its capital requirements, according to the Government.

Meanwhile, AIB, which requires an additional near €7.4bn in capital, set out its plans to raise funds. It intends to start selling its British, US and Polish assets with immediate effect.

AIB said it recognised and is grateful for the “significant support” that has been provided by the Irish taxpayer over the last 18 months.

Meanwhile, Irish Life and Permanent, said that it has been advised by the Financial Regulator that a “prudential capital assessment review” will be carried out on the institution over the coming months in the context of the institution’s restructuring plans.

It was not included in the first wave of reviews as it has not received a government capital injection and is not taking part in NAMA.

Bank of Ireland did not release a statement last night.