Irish banks welcome $7.7 bln government bailout

Ireland's three main banks on Monday welcomed the government's injection of 5.5 billion euros ($7.68 billion) into them with the state taking majority control of Anglo Irish Bank after a loan scandal. The government announced late on Sunday it will make an initial investment of 1.5 billion euros in Anglo Irish Bank, giving it 75 percent control of the lender and a fixed annual dividend of 10 percent. Dublin said it would make further capital available if required.

"The government's commitment to make further capital available ensures that the bank will continue to be a sound and viable institution," Anglo Irish Bank Chairman Donal O'Connor said in a statement.

Dublin will invest 2 billion euros each in market leaders Bank of Ireland and Allied Irish Banks via preference shares giving 25 percent voting rights over what the government described as "key issues."

AIB said it was aiming to raise an additional 1 billion euros from shareholders.

"Our endeavours will be strongly influenced by our analysis of market conditions and the pre-emption rights of our shareholders," AIB said. Bank of Ireland said the injection would strengthen its capital base helping it to reach its ambition of growing its business in Ireland.

Investors have been waiting for months for a bailout plan to match schemes in other countries, but pressure on the government intensified in the past week after Anglo Irish revealed its chairman had kept shareholders in the dark about 87 million euros worth of loans he had received from the lender.