Bank of Ireland looking to raise €2.2bn

| November 29, 2010
Bank of Ireland looking to raise €2.2bn

Bank of Ireland has today revealed it is looking to raise €2.2 billion (£1.86 billion) of capital, in a move designed to meet the conditions of the country’s bailout package.

The capital raising would bring the crisis-torn lender close to nationalisation.

The bank is currently 36% owned by the Government and the news emerged shortly after Ireland’s bailout was agreed with the EU and the International Monetary Fund.

Under the terms of the package, Ireland’s banks will receive €10 billion and will be subject to a “fundamental downsizing”.

Ireland’s banking system came close to meltdown after the slump in the country’s property market resulted in a fall in the value of investments linked to it.

Meanwhile, in a statement, the bank said: “Bank of Ireland notes the announcement by the Central Bank of Ireland that, having considered the additional capital required to reach new capital targets, the bank requires an additional 2.199 billion euros of capital to be generated by 28 February 2011.”

The bailout package for Ireland was signed off over the weekend after days of negotiation.

Full details of the rescue package, which is worth €85 billion (£72 billion), will be confirmed by the Irish Government once it has been approved by all 27 EU ministers – which includes UK Chancellor George Osborne.

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