AIB has not yet released €20m in seed capital funding it is required to commit this year as part of its government recapitalisation obligations.

The bank is still in negotiations with Enterprise Ireland and the managers of the AIB Seed Capital Fund about how the €20m will be allocated.

It is understood the bank wants the €20m added to the existing €53m fund, which is not yet fully committed. This would allow the bank to delay the final release of the money, according to sources close to the talks.

Enterprise Ireland wants the money to go into a new fund so it can be used right away.

Bank of Ireland completed its negotiations earlier in the year for putting another €20m into the smaller Bank of Ireland Seed Fund.

AIB said in a statement: "We're committed under the Nama legislation to provide an additional €20m in seed capital. We're actively engaged with Enterprise Ireland working towards the launch of the fund which will be in quarter four. We're very happy that the needs of all the stakeholders will be satisfied.

"We've already successfully co-launched two funds with Enterprise Ireland, one in 2007 and one in 2009. The 2007 fund comprised €30m (€15m from AIB, €15m from Enterprise Ireland). The 2009 fund comprised €23m (€15m from AIB and €8m from Enterprise Ireland). To date, there have been over 30 investments in 22 young, emerging companies. AIB is currently the largest provider of seed capital in the country."