The Minister for Finance will provide for the extension of ICC Bank's borrowing requirements to ensure it remains adequately funded while it remains in State ownership. The provision will be incorporated in an amendment to the ICC Bank Bill which is before the Dail.

The Minister for State at the Department of Finance, Mr Noel Treacy, said Mr McCreevy intended to bring proposals on the future of ICC before the Dail in due course.

Speaking on the Bill yesterday, Mr Treacy revealed it was Bank of Ireland which withdrew its tender for ICC Bank on Monday after Mr McCreevy asked the bank to raise its bid.

Mr McCreevy's statement on Monday night had indicated it was the Government which decided to withdraw the sale of the bank. Mr Treacy told the Dail Bank of Ireland's final bid for the State-owned bank was "substantially less than the top range of the earlier indicative bids" which are believed to have valued the bank at more than the £300 million (€381 million) the Government had in mind.

Mr McCreevy had the "utmost confidence" in ICC and appreciated the role played by the bank's board, management and staff in the process, Mr Treacy said.

The board of ICC will meet today to discuss its options going forward and a consultation process is expected to be established shortly with a view to securing the bank's future.

Mr Treacy explained that Mr McCreevy had decided to go ahead with the sale after it emerged that Bank of Ireland was the sole bidder in recognition of the fact that a final offer would not be made until it had completed a due diligence process. "The Minister for Finance informed Bank of Ireland at that stage that he was not happy with the price it put on the table and that he wanted this increased." Just three banks - National Irish Bank, Irish Intercontinental Bank and Bank or Ireland - expressed an initial interest in buying ICC. Two withdrew from the process shortly after.