Department says IL&P loan was ‘not approved’

THE Department of Finance has insisted that a controversial €7.4 billion loan from Irish Life and Permanent to Anglo Irish Bank “was not approved by the state”.

Anglo dressed up the loan as customer deposits in its 2008 end-of-year accounts in an apparent attempt to present a stronger picture of health than actually existed at the bank.

A Sunday newspaper yesterday reported that the loan was agreed with the state, quoting from a statement which former IL&P chief executive Denis Casey provided to the gardaí.