Finance Minister Brian Lenihan, announced that the Government finally committed to divide Anglo Irish Bank in a bank funding (which would inherit the whole of their deposits) and bank asset recovery that would focus on the lending institution not transferred to the NAMA (bank that created the Irish State to assume the assets problem of other entities). This new bank recovery would be "sold as a whole or in part to liquidate its assets," stated the minister.
Brian Lenihan, who had discussed the issue with the European Commission and colleagues from other countries, said that this action will restore confidence in the country's financial system. "The decision taken by the Government will give certainty about the future of Anglo Irish Bank," said the minister, adding that resolving the problem posed by that institution "is essential to promote confidence and stability in our financial system."
The Commission has authorised around €25 billion in emergency state recapitalisations for Anglo Irish which, obviously, creates distortions of competition. The Commission received a restructuring plan for the bank in late May, which it has been discussing with the Irish government. Vice President Almunia said: "I welcome the clarification by the Irish Finance Minister on what would now be the Irish preferred option regarding Anglo-Irish. I view this new option positively as it would deal better with the distortions of competition. However, a number of important aspects still need to be clarified, and a new notification received, before the Commission is in a position to finalise its assessment and to take a decision."
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