Commission Vice-President in charge of competition policy, Joaquín Almunia, said: "Today, the state aid chapter on Anglo Irish Bank and INBS has been finally closed. I am satisfied that the distortions of competition caused by the enormous aid they have received is satisfactorily addressed by their exit from the market. Today's decision allows us and the Irish Government to focus on the future of the Irish banking system".

The joint plan fulfils the EU criteria on restructuring aid for banks as it: (i) provides for an orderly resolution of both institutions, (ii) contains appropriate measures to ensure that burden-sharing is achieved by their stakeholders, and (iii) limited the distortion of competition through the complete exit of Anglo and INBS from the markets in which they operate (mostly Ireland, UK and US).

Anglo Irish Bank and INBS together have received a total of €34.7 billion in capital injections to cover the losses on their impaired property loans. Both institutions furthermore benefited from guarantees and an impaired asset measure. These measures were necessary because of the very poor quality of the loans resulting from risky lending practices in the past, and the drop in prices on the commercial property market combined with the ongoing crisis on financial markets. After several rescue measures in favour of the two institutions, and the submission of several individual restructuring plans by the Irish authorities, a joint restructuring plan for Anglo Irish Bank and INBS was submitted to the Commission on 31 January 2011 in the context of the Programme for Support for Ireland.

The plan sets out in detail how the two institutions' loan books will be resolved over the 10-year period. To ensure that the assets are managed in a way consistent with the resolution of both institutions, several commitments have been put in place, for instance a commitment that the merged Anglo Irish Bank and INBS entity cannot enter into new activities.

The Commission has therefore approved all aid measures granted to Anglo, INBS and to the merged entity as restructuring aid, and closed its investigation into the restructuring of Anglo Irish Bank.

Press release