Allied Irish Banks Effectively Under State Control After €3.7 Billion Bailout, Further €6.1Billion Needed Before End of February

Commentary on Ireland’s situation here:

Rothschild Bank AND Goldman Sachs Are Both On The LIST Of Bondholders Getting US Taxpayer Billions In Irish Bailout

Allied Irish Banks has received a €3.7bn (£3.14bn) injection from the Irish government, effectively placing it under state control.

Allied will require a further 6.1bn injection before the end of February to shore up its balance sheet.

Ireland will use funds from the country’s National Pension Reserve Fund (NPRF) to boost Allied’s core tier 1 capital ratio to 8pc ahead of a year-end deadline set by the government.

The NPRF will also receive convertible non-voting right shares, which will be converted into ordinary stock, handing it a 93pc holding in Allied once the bank completes the sale of its Polish interests to Santander early next year.

Allied will move out of the main Irish and British stock markets on January 26 and apply for a listing on the enterprise securities market of the Irish exchange, giving shareholders access to a trading facility for its shares.

Brian Lenihan, the Irish finance minister, said: “The markets are not willing to invest in the Irish banks because they do not have confidence in them.

“We have to have a banking system in this country and it has to be brought into public ownership. I always made it clear that would be a last resort and we are now engaged in that last resort.”

The Irish government was forced to seek an €85bn bail-out from the European Union and International Monetary Fund after its banks were hit by a collapse in the property markets. Under the terms of the aid package, Irish banks were handed around €13bn to bulk up their balance sheets.

Allied will require a further €6.1bn injection before the end of February to shore up its balance sheet. The Irish government now controls four of Ireland’s six main lenders.

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Ireland: Bank Bailout May Hit 50 Billion Euros

50 billion euros is an awful lot of money for the Republic of Ireland.

Finance Minister Brian Lenihans is bankrupting Ireland, looting the people and is financing the elite banksters of the world that are 50 billion euros richer.

Never was robbing a bank more easy, risk-free  and lucrative.

The media is always telling the people about the losses and never about the elite criminals who made a fortune and are on the other side of those intentionally bad investments.

See also:

Nationalised Anglo Irish Bank Posts €8.2 Billion Losses For Half Of 2010!

Anglo Irish Bank losses are the worst in the entire world

Ireland: Central Bank Hid Property Crash Forecast

“The Irish banking system is at rock bottom today,” Lenihan said today.

(30 Sept.) Bloomberg — Ireland is preparing to take majority control of Allied Irish Banks Plc and pump extra cash into Anglo Irish Bank Corp., raising the cost of repairing the financial system to as much as 50 billion euros ($68 billion).

“The Irish banking system is at rock bottom today,” Finance Minister Brian Lenihan said today in a Bloomberg Television interview in Dublin. He rejected speculation Ireland will need outside help. “It can only revive from now because it’s recapitalized and reformed,” he said.

Ireland’s deteriorating finances fueled investor concerns that it would become the first government after Greece to tap the 750 billion-euro rescue fund set up by the European Union and International Monetary fund to stanch the debt crisis. Irish bonds have plunged this month, sending the yield on 10-year securities to higher than any other euro nation except Greece.

The cost of bailing out the country’s banks may ultimately rise to about 50 billion euros, under a “stress case” scenario for Anglo Irish, according to figures published by the country’s finance ministry and the central bank in Dublin today. The base case estimate is about 45 billion euros, the figures show. Allied Irish may need as much as 3 billion euros.

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