Anglo Irish Bank is set to be liquidated after the European Commission gave the go ahead to merge it with the Irish Nationwide Building Society.
The EU green light to merge the two organisations means plans to begin the liquidation process over a ten year period must now be approved the High Court.

Joaquin Almunia, vice president of the European Commission, said the joint plan fulfils EU criteria on restructuring state aid for banks.

He explained, ‘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 announcement has angered Irish taxpayers as both organisations have already received a total of £31.1 billion (€34.7 billion) to cover huge losses from property loans which had to be written off.

The European Commission statement today said these measures were necessary because of the ‘very poor’ credit quality of loans resulting from risky lending practices in the past and the drop in prices on the commercial property market.

Both organisations will not be permitted to enter into any new business until the liquidation is complete.