EU’s Rehn says Irish bank capital needs covered

BRUSSELS, March 31 (Reuters) – The additional capital
requirements of Ireland’s banks announced on Thursday are well
covered by the current European Union and IMF financial support
package, the EU’s economy commissioner said on Thursday.

In comments made to Reuters on the sidelines of a meeting
of G20 countries, Olli Rehn said: “The capital needs are well
covered by the financial assistance program supported by the EU
and the IMF.”

“The extent of the damage is now finally clear and
confirmed,” said the EU’s economic and monetary affairs
commissioner. “So are the way forward and the European
support.”

Rehn made the comments as the European Commission,
International Monetary Fund and European Central Bank said that
Irish banks were likely to remain reliant on central bank
funding during a period of deleveraging.

“It is understood that the banks are likely to remain
reliant on central bank funding during this deleveraging
period,” the institutions said in a statement.

EU’s Rehn says Irish bank capital needs covered