The Irish government is preparing to take a majority stake in the Bank of Ireland.
It means Ireland is left with no big, independent lender.
The increased government stake is part of the talks surrounding the bailout package from the European Union and the International Monetary Fund, according to the Financial Times. The package, which amounts to between £65 billion and £75 billion, is an attempt to rescue the country’s struggling banks and economy.
Meanwhile, Standard & Poor’s has cut Ireland’s short- and long-term sovereign ratings due to concerns over government borrowing. (article continues below)
The Irish government is also today expected to release an austerity plan, which is required as part of the conditions of the bailout. The four-year plan is looking to make around £13 billion of cuts.