SPEAKING JUST hours before the Government’s announcement on Anglo Irish Bank last night, Taoiseach Brian Cowen defended the emergency €1.5 billion recapitalisation of the bank.
He said the recapitalisation had taken place on the basis that the financial institution was of “systemic importance” to the Irish banking system.
Speaking in Tokyo at 9.15pm local time (12.15pm Irish time), Mr Cowen said the bank’s status as such had been confirmed by the European Commission, which decided on Wednesday that the recapitalisation was consistent with the State aid allowable during the current crisis.
He said the Government’s purpose in supporting the banks was to retain the soundness of the financial system and not to prop up any bank for its own sake.
He was responding to the decision by Fine Gael to withdraw its support for the capitalisation of the bank.
Party leader Enda Kenny said Anglo Irish no longer enjoyed sufficient confidence and should be wound up.
The Taoiseach told reporters yesterday the Government continued to monitor development in Anglo Irish very closely.
“Our position is to provide viability and soundness to the financial system.
‘‘I don’t regard it as a waste of money to be trying to support the financial system in the present circumstances.
“It is absolutely critical to the soundness of the economy that we are supportive for the benefit of general commerce to try and retain employment as unemployment rises.”
Mr Cowen also said that yesterday’s call by Ibec to bring an end to guaranteed defined pensions in the public sector reflected a long-standing stated position of the employers’ group.