Press Release: State aid: Commission temporarily approves rescue aid for merged entity Educational Building Society/Allied Irish Banks

The European Commission has granted temporary approval, under EU state aid rules, to a recapitalisation worth up to €13.1 billion of AIB/EBS, an entity resulting from the merger of Allied Irish banks plc and Educational Building Society, by the Irish authorities. In particular, the Commission found the measure to be necessary to increase the bank's solvency ratios, to enable it to resist stress situations, and to preserve stability on the Irish financial markets. The Commission will take a final decision on aid to AIB/EBS based on the new restructuring plan that Ireland committed to submit in due course to take account of this additional state support.

ESO: Background Information: EU warns Ireland over banking plan http://www.europeansources.info/record/eu-warns-ireland-over-banking-plan/

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