Economy AIB to repay Ireland 1.7 billion euros, more to come

AIB to repay Ireland 1.7 billion euros, more to come

aib-thumbAllied Irish Banks (AIB) won regulatory approval on Friday to pay 1.7 billion euros (1.25 billion pounds) of government bailout funds, beginning the process of repaying the 21 billion euros it received during the 2008-9 financial crisis.

Ireland pumped a total of 64 billion euros into its banks during the crisis, which, at almost 40 percent of annual economic output, was the most expensive rescue in the euro zone.

State-owned AIB’s rescue was the biggest bailout given to any Irish bank still trading.

AIB has been in discussions with European regulators about reorganising its capital structure, including how much it can repay the government from the 3.5 billion euros of preference shares it owns in the bank.