Following last Friday's publication of Anglo Irish Bank’s (AIB) financial results for the six months ended March 31, 2009, the Irish Minister of Finance announced that, subject to EU approval, the Irish government will provide up to €4 billion of capital to AIB.
The Minister stated that “The overriding concern of the Government has been:
- to protect the economy from the wider losses that would occur in the event of the failure of the bank;
- to protect the €64 billion of customer and interbank deposits in the bank; and
- to prevent the bank becoming a systemic threat to the financial system.
AIB was effectively nationalized this past January and the capital injection follows the Irish government's February capital injections into Allied Irish Bank and Bank of Ireland (totaling €7 billion).