herald

Saturday 19 January 2019

Parties rule out more bank cash

IMMEDIATE bank recapitalisation, required under the IMF/EU bailout, has been ruled out by the two main Opposition parties.

Fine Gael finance spokesman Michael Noonan said that the new Government should postpone any further bank bailouts until April, when the Central Bank's stress-testing of the lenders is complete.

And Labour Party leader Eamon Gilmore went one step further and pledged that his party would not put any further capital into Bank of Ireland, AIB and EBS building society before renegotiating the bailout with the IMF and the EU.



STROKE

Earlier this week, Minister for Finance Brian Lenihan announced that any further capital injection into the banks would be postponed until after the election.

Mr Noonan said the minister's decision to delay the payment of up to €10bn to the banks was a "political stroke" designed to avoid bad news during the election campaign.

And he added that there was still hope that the Bank of Ireland might not need Government funds.

Mr Lenihan says he will go ahead with the recapitalisation of AIB, Bank of Ireland and the EBS if opposition parties want him to and rejected the suggestion that he had "pulled a stroke".

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