Bank of Ireland fights to raise cash and stay independent

Bank of Ireland is racing against time to stave off government control as the strongest of the country’s damaged banks attempts to raise billions of euros through private sources rather than fall back on state funds.

The bank has to raise €5.2bn ($7.4bn) of fresh capital – roughly a fifth of the €24bn shortfall identified across the banking sector as a whole – amid last-ditch efforts to restore confidence in Ireland’s stricken financial system.

Shares in Bank of Ireland jumped 40 per cent on 1 April 2011 as investors welcomed the news that the bank intended to launch a package of measures including calling on existing shareholders for funds and restructuring its debt.

Ireland: Department of Finance: Speech, 6.4.11: Minister for Finance Statement on Bank Reorganization http://www.finance.gov.ie/viewdoc.asp?DocID=6765&CatID=79&StartDate=1+January+2011

ESO: Background information: Ireland to outline bank stress tests / Ireland pledges 'credible' banks revamp as stress test concerns rise / Irish banks need €24bn after stress tests http://www.europeansources.info/record/ireland-to-outline-bank-stress-tests-ireland-pledges-credible-banks-revamp-as-stress-test-concerns-rise-irish-banks-need-e24bn-after-stress-tests/

ESO: Background information: Ireland holds talks on bank crisis with ECB http://www.europeansources.info/record/ireland-holds-talks-on-bank-crisis-with-ecb/

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