Posted by
alfredlester on Thursday, September 30, 2010 6:18:17 AM
DUBLIN – Finance Minister Brian Lenihan says Ireland will take majority control of Allied Irish Banks and pump billions more into two smaller Irish banks, Anglo Irish and Irish Nationwide.
Lenihan said Thursday Ireland would give euro3 billion more to Allied Irish, and euro2.7 billion to another nationalized bank, Irish Nationwide.
Lenihan warned Ireland faces even tougher spending cuts to rein in a deficit expected to surge beyond a staggering 30 percent of GDP this year.
Lenihan spoke after the Central Bank announced its estimate for the total cost of bailing out Anglo: euro29 paydayloans.3 billion ($39.88 billion). Ireland already has committed euro22.9 billion. The Central Bank warned that, in a worst-case scenario, the Anglo bailout bill could top euro34 billion.
Allied Irish shares fell 20 percent in early trading.
Ireland to pump billions more into debt-hit banks