The Irish government announced Sunday a 10-billion-euro (13-billion-dollar) rescue of Ireland’s six main banks.
The money will be used to recapitalise banks by buying their shares and other measures.
“The government has decided either through the National Pensions Reserve Fund or otherwise… to support, alongside existing shareholders and private investors, a recapitalisation programme for credit institutions in Ireland of up to 10 billion euros,” the finance ministry says in a statement.
It says the aim was to ensure the long-term sustainability of the banking sector and “to underpin its contribution through the availability of credit to individuals and businesses in the real economy.”
“This initiative will help to foster and encourage the flow of funds to the economy, and limit the impact of financial market difficulties on businesses and individuals,” says the ministry.
The full story is available at the The Economic Times web-site.
D.C.