Anglo Irish Bank will probably need additional capital, Minister for Finance Brian Lenihan said in the Dáil today.
The Government committed to provide €1.5 billion in new capital to the bank before its nationalisation in January but a surge in its loan losses since indicates the bank may yet require up to €3 billion to remain within capital guidelines set down by the regulator.
Mr Lenihan said this afternoon he plans to introduce legislation for the National Asset Management Agency during the Dáil’s summer session.
No “valid alternative” to the agency has yet been brought forward, he said.
He also said non-Irish banks operating in Ireland are “deleveraging” faster than Irish banks.
Mr Lenihan said the economy will decline by around 13 per cent between 2008 and 2010. The rate of unemployment is expected to rise to about 15 per cent in 2010, though the pace of increase is slowing.
Bloomberg
