THE GOVERNMENT is unlikely to give any cash to Anglo Irish Bank before its board produces a business plan and its exposure to bad property loans is known.

The State took ownership of Anglo Irish Bank in January in the wake of a row over hidden loans to former chairman, Seán Fitzpatrick.

Minister for Finance Brian Lenihan recently acknowledged that it is likely to need further capital to survive.

The bank is due to publish results for the six months to March later this week, and losses are likely to be more than the amount originally expected.

Following reports yesterday that the State has been providing it with working capital – cash used to fund day-to-day needs – the Minister said that the Government has not given the bank “a cent” to-date.

However, he did say that the Government would provide the bank with capital as and when required, and added that that was the price of nationalisation.

Department of Finance sources said yesterday that the Government is not likely to give Anglo any cash until its board has produced a strategic plan for the bank, which is due later this year. Also, any capital it receives will depend on what emerges about the bank’s exposure to bad property loans as the National Asset Management Agency (Nama) is established.

Anglo is thought to have a very high exposure to bad property debts as it loaned large sums to developers during the boom. According to reports at the weekend, it may need €3 billion to compensate for losses on this business. Mr Lenihan has asked its board, led by chairman Donal O’Connor, to put together a strategic plan for the bank’s future. The Minister has not set a deadline for the board to report back with the plan, but it is expected later this year.

Sources say that the plan will be key to determining what capital it needs, as it will set out the long-term future for the bank. The board’s members include former finance minister and Fine Gael leader, Alan Dukes.

If the Government does provide the bank with capital, the EU will first have to give it state aid approval. European law generally bans state aid where it distorts normal competition between businesses. It allows such supports in some circumstances, but the EU Commission first has to approve it.

Yesterday was the day for the country’s main banks, including Anglo, AIB and Bank of Ireland, to provide the National Treasury Management Agency (NTMA), which will have responsibility for running Nama, with details of their loan books.

A spokesman for the NTMA told The Irish Timesthat the level of co-operation had been "tremendous" and said that all the banks involved had provided the information asked of them. He said that the agency would have to go through the material provided before deciding on the next step.

The Oireachtas will have to pass legislation to establish Nama.

The Bill is likely to be published in July and Mr Lenihan said at the weekend that, if necessary, the Dáil will be recalled during its summer break to ensure that the legislation is passed with the minimum delay. Anglo was embroiled in controversy as a result of Mr Fitzpatrick’s activities, and the placement of a 10 per cent stake in the bank with a group of wealthy investors last year.

A number of bodies, including the Garda fraud squad and the State’s corporate law enforcer, are investigating the bank.