AIB and EBS get approval for aid

THE European Commission has approved state aid of up to €13.1 billion for the merged Allied Irish Bank and Educational Building Society to ensure it is sufficiently capitalised to meet stress test requirements.

As a result the state will own 99.8% of the merged banks shares. With Bank of Ireland, it will be one of two pillar banks under the restructuring plans for the country’s banking sector.

The approval is temporary subject to a revised restructuring plan being submitted to the Commission, due at the end of the month.