The European Commission has approved an emergency €875 million capital injection for EBS.
The funding Commission approved the measure for a period of six months. The building society must now submit a restructuring plan to address its difficulties and eliminate the need for State aid.
EBS needs the funds to bring capital reserves up to the Financial Regulator's required levels. The Government's move came after the society failed to attract private investors.
"EBS needs a significant recapitalisation to comply – and to continue to comply in the coming years – with capital requirement rules. The measure is therefore appropriate to preserve financial stability in Ireland and can be approved for six months to that end," said Competition Commissioner Joaquín Almunia.
The proposals must be submitted within six months.