EU Urges Ireland to Recapitalize Banks ‘as Soon as Possible’
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The European Union said it expects Ireland to make capital injections into Allied Irish Banks Plc, Bank of Ireland Plc and EBS Building Society “as soon as possible” to ensure respect for the terms of international aid.
Under its 85 billion-euro ($115 billion) aid package in November, Ireland agreed to recapitalize the three lenders by the end of February to increase their core Tier 1 capital ratios, a gauge of financial strength, to at least 12 percent. The government this week announced a delay in the measures until after Feb. 25 elections, saying “this issue should be addressed by the incoming government.”