EU approves €5bn state aid package for BoI -- but only if bank has a future
Published 12/07/2011 | 05:00
THE European Commission yesterday approved up to €5.35bn of state aid for Bank of Ireland but warned that the latest bailout won't get final approval unless the bank can prove it has a future.
The comments came as BoI shareholders met to okay a plan to raise €5.3bn by the end of July. The measure, demanded by the Central Bank, will see the bank raise some money from investors and some from the State.
The Government could have to stump up €1.71bn for new shares in the bank, plus another €1bn in a loan that could be exchanged into stock at a later date. The State already owns 36pc of the bank but could end up owning twice this.
Yesterday, the Commission agreed that the upcoming July recapitalisation was "necessary to increase the bank's solvency measures".