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Irish Bank will stop bonus payments

After stops threatening the Government Irish Bank bonuses - ARD

AIB waived but now the controversial bonus payments. The Irish government has prevented millions in bonuses to executives of rescued with state aid Allied Irish Bank (AIB). Finance Minister Brian Lenihan threatened the bank in a letter to the deletion of state aid if the proposed pay the AIB bonuses of 40 million euros to their managers should. It does not matter at what period of time referred to by the bonus payments. Then said to the bank to waive bonuses. To implement this decision, according to AIB, however, a change in the law necessary.

Lenihan set to 90-percent tax

Previously, the bank argued that it is obliged to pay the bonuses for 2008. In response, Lenihan had already announced last week to try to bonus payments for bank managers in the future impose a 90 percent tax. A spokeswoman for the Finance Ministry had, however, clarified that the tax could be applied retroactively.

The Irish state has the AIB with assistance from previously EUR 3.5 billion saved from collapse. It is next to the Anglo Irish and Bank of Ireland is one of the largest banks in the country. The government estimates the cost of rehabilitation of the money houses a total of 50 billion euros. The budget deficit in Ireland will increase mainly because of the bailout this year to 32 percent of gross domestic product. The resulting debt crisis forced the Irish government, billions in aid of € parachutes request.