The Government has secured permission from the European Commission to carry out the €4 billion emergency recapitalisation of the nationalised Anglo Irish Bank.
“The proposed measure is required as a matter of urgency to preserve the financial stability of the bank which is of systemic importance to the Irish financial markets," the 27-nation European Union's executive arm said in a statement.
"The aid is approved as a temporary rescue measure and Ireland has committed to submit a restructuring plan for the bank," the Commission said.
The Commission, which regulates state aid in the EU, said the measure was an adequate means to remedy a serious disturbance in the Irish economy while avoiding undue distortions of competition.
It added that the proposed recapitalisation was appropriate to remedy Anglo's solvency problems and maintain confidence in the Irish financial markets.
The proposed capital injection will help preserve an adequate level of core tier 1 capital even after further impairment, the Commission said.
Reuters