Dienstag, 10. August 2010

EU agrees new Anglo Irish Bank aid, adds to budget risk

By Andras Gergely and Foo Yun Chee

DUBLIN/BRUSSELS, Aug 10 (Reuters) - Anglo Irish Bank won temporary clearance from the EU on Tuesday for a fresh bailout of up to 10 billion euros ($13.2 billion) from the Irish government, more than expected and putting further pressure on Ireland's bulging budget deficit.

Ireland's finance ministry said underlying budget trends remained in line with its targets but it acknowledged that an aid package given to Anglo Irish in March would probably increase the government deficit and so could the latest bailout.

The bank was nationalised last year after it was hit by deposit and loan scandals and a property market crash. The Irish government injected 4 billion euros in emergency capital into the bank last year and another 10.3 billion euros this year.

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