The EBS Building Society will hold a special general meeting on December 18th to seek approval from members to allow the Government to take a stake in the organisation in return for a capital injection.

Last month it emerged that the State could take a stake of up to 60 per cent in an enlarged building society comprising a merged EBS and Irish Nationwide Building Society in return for a capital injection of up to €400 million. At the time EBS chief executive Fergus Murphy said that a deal could be agreed by early next year.

Announcing the meeting yesterday, the EBS said it would require new capital of €300 million to €400 million, largely due to the proposed transfer of about €1 billion in loans to the National Asset Management Agency (Nama). This includes about €500 million in land and development loans, and a further €500 million in “associated” loans.