The European Union said it expects Ireland to make capital injections into AIB, Bank of Ireland and EBS Building Society "as soon as possible" to ensure respect for the terms of international aid.

Under its €85 billion aid package in November, the Govenment agreed to recapitalise the three lenders by the end of February to increase their core Tier 1 capital ratios, a gauge of financial strength, to at least 12 per cent.

The Government this week announced a delay in the measures until after February 25th elections, saying the issue should be addressed by the incoming government.

"We understand this is temporary and the Irish authorities will proceed as soon as possible with this recapitalisation in order to bridge this capital ratio of 12 per cent as agreed under the program," Amadeu Altafaj, spokesman for EU economic and monetary affairs commissioner Olli Rehn, told reporters in Brussels today.

Bloomberg