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No more Bank of Ireland aid

City A.M. Reporter
BANK of Ireland&nbsp; does not foresee the need for further state bailouts according to the restructuring plan submitted to the European Union, though it said the state would remain a substantial owner.<br /><br />The bank, which received &euro;3.5bn (&pound;3.17bn) in state capital in return for an indirect 25 per cent stake, is also expected to transfer more than &euro;15bn of loans to the National Asset Management Agency, a new &ldquo;bad bank&rdquo;.<br /><br />Analysts said the assumption of not requiring more state help in the future was common in plans submitted to the EU.<br /><br />&ldquo;With these restructuring plans, the banks have to demonstrate to the commission that they are viable businesses going forward that can operate without state support,&rdquo; said Ciaran Callaghan, analyst at NCB Stockbrokers.<br /><br />In a related case yesterday, the European Commission said new state aid to rescue German lender WestLB might require certain conditions to win the approval of European Union regulators.<br /><br />Brussels has imposed tough conditions including major divestments or balance sheet reductions for several EU banks.