Press Release: State aid: Commission temporarily clears support for Anglo Irish Bank, Irish Nationwide Building Society and Allied Irish Bank

The European Commission has authorised under EU state aid rules emergency measures for three Irish banks. For Anglo Irish Bank, the Commission has approved a recapitalisation of up to €4.946 billion and a guarantee covering certain off-balance sheet transactions. The Commission has also approved a recapitalisation of €2.7 billion of Irish Nationwide Building Society (INBS). Finally, the Commission has endorsed a recapitalisation of Allied Irish Bank covering its capital requirements to the end of 2010 and the capital requirements following from the Programme for Support agreed between the Irish authorities, the IMF and the EU. The Commission's approval of these emergency measures to help to preserve financial stability in Ireland does not prejudge future decisions on restructuring (for Allied Irish Bank) or on orderly resolution (for Anglo Irish and INBS).

With regard to Allied Irish Bank, the final decision will depend on the Commission being satisfied that the bank will be commercially viable in the long term without further injections of taxpayers' money, that there is a significant contribution by the bank's shareholders and subordinated debt holders to the restructuring costs and that the bank will reduce its activities to offset the distortion of competition caused by the aid.

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