Dublin  - Ireland's government plans to inject up to 7.5 billion euros (10.5 billion dollars) into the banking system to support the country's three largest banks, a news report said Monday.

Finance Minister Brian Lenihan on Sunday announced the plan to recapitalize the Allied Irish Bank (AIB), Bank of Ireland and Anglo Irish Bank, the Irish Times newspaper said.

The government is effectively taking over AIB, acquiring a 75-per-cent stake in the bank for 1.5 billion euros, and is pumping 2 billion euros each into the other two banks.

Two billion euros are set aside additionally for state guarantees. In exchange for its investment, the government gets a 25-per cent vote in "key issues," Lenihan told the newspaper.

Ireland's government said AIB and the Bank of Ireland indicated they wanted to raise cash from shareholders through the state underwriting up to 1 billion euros worth of new shares.

It would be a "very important test for the banks" to show they can raise cash privately, Lenihan said. (dpa)