Bank of Ireland, currently 36% State-owned, would become majority Government controlled.
It emerged last night that the EU and the IMF will offer the Government an €85 billion facility which can be used to recapitalise the banks and fund the public finances. The package would see the level of capital in the Irish banks being increased from 8% to 12% in a move to bolster confidence of depositors in the financial system. Last week the IMF and EU team began intensive meetings with the Central Bank to re-shape the financial system for the future. Their plan would boost levels of capital in banks, to cushion against future loan losses. The 12% capital figure - a measure of how much funds the banks must hold in reserve - is significant by international standards. It is aimed at boosting confidence - particularly for depositors who are also covered by the EU bank guarantee. The money will come from an €85 billion facility provided by the EU and IMF. The remainder of the funds will be used to run the country on a day-to-day basis - perhaps over a two to three-year period. While th...