Cabinet set to approve €8bn bank recapitalisation
03/02/2009 - 08:14:17The cabinet is expected to approve a much larger recapitalisation scheme for Bank of Ireland and Allied Irish Bank when it meets later today.
The Government was initially planning to inject €2bn of taxpayers' money into the two banks to help them overcome the financial crisis.
However, reports yesterday said the Department of Finance had decided to increase the figure to €8bn to avoid a situation whereby the emergence of bad debts in the future would require a further injection of funds.
Meanwhile, the cabinet is also expected to discuss the collapse of discussions with the social partners this morning on an economic recovery plan.
The Government is set to respond by implementing its own cuts in public spending without the agreement of the trade unions.
