Ireland to pump 5.0 billion euros into Anglo Irish: report

29th September 2010, Comments 0 comments

The Irish government will announce on Thursday an injection of about 5.0 billion euros (6.8 billion dollars) into stricken Anglo Irish Bank, the Financial Times reported.

Ireland's latest capital injection will take Dublin's planned total bailout of the bank to 30 billion euros, the FT said on Wednesday.

On Tuesday, ratings agency Standard and Poor's warned that the total cost could exceed 35 billion euros, as Irish Prime Minister Brian Cowen attempted to reassure nervous financial markets about Ireland's severe economic problems.

Cowen said the government would soon present a "manageable" plan to bail out debt-laden Anglo Irish Bank.

"The government has shown consistently our preparedness to do what is necessary to ensure there is international confidence in the direction in which the economy is taking," Cowen told reporters.

"As the governor of the Central Bank has said, we believe that we can provide a manageable way forward for that bank, about how that will be dealt with over the longer term."

With Ireland struggling to ride out the financial storm and Anglo Irish's plight adding to the uncertainty, Cowen also stressed that the country had already secured funding for its budget until the middle of next year.

Anglo Irish Bank reported a massive pre-tax loss of 8.2 billion euros in the six months to June, on top of 12.7 billion euros for the whole of 2009, the biggest-ever losses in Irish corporate history.

Like some of its rivals battered by the global financial crisis, a deep recession and a property market meltdown, Anglo Irish was nationalised in early 2009 to save it from collapse.

© 2010 AFP

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