Irish govt injects additional capital into EBS

DUBLIN, Dec 15 (Reuters) - Ireland's government said on Wednesday it had injected an additional 525 million euros into EBS via special investment shares that will be translated into ordinary shares if the building society is converted into a company. Bancassurer Irish Life & Permanent and Dublin-based private equity group Cardinal Asset Management, with backing from the Carlyle Group and U.S. investor Wilbur Ross, are competing to take over Ireland's largest building society. The special investment shares give the Minister of Finance control of EBS, which before the financial crisis was owned by its members, including the composition of the board and the passing of members' resolutions. The additional capital will bring EBS' core Tier 1 ratio, a measure of financial strength, to 8 percent by the end of the year. Under the terms of an 85 billion euros EU/IMF bailout, Ireland has agreed to "overcapitalise" its lenders and EBS will need to raise an additional 438 million euros by the end of February to bring its Core Tier 1 ratio to 13.5 percent. The government has already poured 350 million euros -- 100 million euros in special investment shares and 250 million euros in promissory notes -- into EBS to cover losses on property loans and meet tougher capital requirements. (Reporting by Carmel Crimmins; Editing by Hans Peters) Keywords: IRELAND EBS/ (; Reuters Messaging:; +353 1 500 1529) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved.

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