The EU And IMF Offer Ireland Massive €85 Billion Bailout With AIB On Brink Of Full Nationalization

The EU and IMF have offered Ireland a €85 billion bailout to be used for the country’s baning sector and its public finances, according to RTE.

As part of the deal AIB may be fully nationalized.

According to RTE:

While the authorities are reluctant to fully nationalise AIB it will need significant new funds. One option is that the State will be left with an 99.9% stake the bank in return for the new capital.

So it appears AIB is on the brink of a full nationalization. The Bank of Ireland may also become majority owned by the government.

As part of the deal, the amount of capital held by Irish banks will increase to 4%, from 8 to 12%. This is, according to RTE, to reassure those with accounts at the banks.

The move is not surprising considering PIMCO’s Mohamed El-Erian’s earlier remarks that individuals banking in Ireland should remove their deposits.

Read the full details of the bailout proposal at RTE >

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.