No more Bank of Ireland aid
BANK of Ireland 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.
The bank, which received €3.5bn (£3.17bn) in state capital in return for an indirect 25 per cent stake, is also expected to transfer more than €15bn of loans to the National Asset Management Agency, a new “bad bank”.
Analysts said the assumption of not requiring more state help in the future was common in plans submitted to the EU.
“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,” said Ciaran Callaghan, analyst at NCB Stockbrokers.
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.
Brussels has imposed tough conditions including major divestments or balance sheet reductions for several EU banks.