Irish government aims to shore up AIB with an extra €3.7bn state cash

THE Irish government will apply to the High Court today to pump €3.7bn (£3.15bn) of state cash into Allied Irish Banks (AIB), according to reports.

Finance minister Brian Lenihan has said he will inject fresh capital into the country’s second-largest lender before the end of the year to bring its core tier one capital ratio to eight per cent.

The move will mean that the government will have almost full ownership of what was once Ireland’s largest listed lender.

Under an EU and IMF agreement, AIB needs nearly €10bn to bring its core tier one capital ratio to 14 per cent by the end of February.