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| Irish banks to get fresh billions | Irish banks to get fresh billions |
| (10 minutes later) | |
| The Irish government will inject another 8.3bn euros (£7.4bn, $9.9bn) into the nationalised Anglo Irish bank, it has been announced. | The Irish government will inject another 8.3bn euros (£7.4bn, $9.9bn) into the nationalised Anglo Irish bank, it has been announced. |
| No new government money will be invested in Bank of Ireland, however, which will raise money privately, as will Allied Irish Banks. | No new government money will be invested in Bank of Ireland, however, which will raise money privately, as will Allied Irish Banks. |
| A further 2.6bn euros will also be invested in the Irish Nationwide Building Society. | A further 2.6bn euros will also be invested in the Irish Nationwide Building Society. |
| Irish banks have struggled to recover from 2008's financial crisis. | Irish banks have struggled to recover from 2008's financial crisis. |
| Anglo Irish bank was nationalised last year, while Allied Irish Banks and Bank of Ireland are 25% and 16% owned by the taxpayer respectively. | |
| Earlier the Irish financial regulator announced that Allied Irish Banks needed 7.4bn euros of fresh capital before the end of the year. | |
| The Bank of Ireland needs to find 2.66bn euros, the regulator added. | |
| Meanwhile the Irish Republic's state-run "bad bank", has announced the first loans to be transferred to it from struggling banks. | |
| We need to translate international confidence into the banking sector... and sort it out once and for all Brian Lenihan, Irish finance minister | |
| The National Asset Management Agency (Nama), which was created last year, will buy 1,200 bad loans from the banks for a total of 8.5bn euros (£7.6bn, $11.4bn). | |
| Speaking before the announcement, Eoin O'Callaghan, European economist at BNP Paribas, said the transfer of bad loans was important progress. | |
| "This is the start of the plan designed to cut the vicious circle in Ireland whereby banks aren't lending in to the economy, which is making things worse and making their own loan portfolios less likely to be paid back, making the banks even less likely to lend," he told the BBC. | |
| 'International confidence' | |
| Irish finance minister Brian Lenihan told RTE radio that further action was needed, saying that the banking sector needed to be sorted out "once and for all". | |
| "The Irish state has established its own credibility as a state that can manage its own finances. There is huge international recognition of that now," he said. | |
| "We need to translate all that international confidence into the banking sector as well, and sort it out once and for all." | |
| Irish plans to increase taxpayer stakes in the major banks are in contrast to the position of other countries hit by the financial crisis. | |
| In the US, several bailed-out banks have recovered sufficiently to repay the government aid they received. | |
| This month the US government announced plans to sell back its 27% stake in Citigroup - one of the banks hardest hit by financial crisis. | |
| In UK, the government is expected to consider selling back its stakes in Lloyds Banking Group and Royal Bank of Scotland later this year. | |
| Expectation of further action by the Irish government has caused bank shares to fall again on Tuesday, following sharp falls on Monday. |