EU allows Irish banks £15bn in emergency funds

Emergency aid for three Irish banks was approved by the European Commission today.

Brussels authorised recapitalisations of 4.96 billion (£4.2 billion) for Anglo Irish, 2.7 billion (£2.3 billion) for Irish Nationwide Building Society and up to 9.8 billion (£8.3 billion) for Allied Irish Bank.

The Commission said the emergency measures would not prejudice any decisions next year on the restructuring of Allied Irish, or on "orderly resolution" for Anglo Irish and INBS.

The final decision on Allied Irish will depend on the Commission being satisfied that the bank will be commercially viable without further investment of taxpayers' money and with a "significant contribution" by the bank's shareholders.

EU Competition Commissioner Joaquin Almunia said that despite the "profound" difficulties being faced by the Irish banking sector, the Commission would continue applying EU state aid rules to the support Irish banks are receiving.

"The measures approved today are necessary to ensure that these institutions meet their respective obligations and will help to preserve financial stability in Ireland," he said.

Today Ireland's "bad bank", set up to take over banks' risky commercial property loans, said it will take legal action against property developers who have transferred assets to their spouses to prevent them being seized.

The National Asset Management Agency said it was pursuing developers to bring expensive private homes, land and rental properties under its control.

"If they don't do it consensually within a specified time period, NAMA will pursue them in court," it said.

NAMA said three developers had voluntarily agreed to reverse such transfers resulting in the agency acquiring assets worth 130 million.