Banks to pay €470m in dividends for bailout

THE Government bit the bullet last night pledging €5.5 billion in capital to three of the country’s leading banks.

It has also promised to underwrite a further €1bn in each of the two main banks if they decide to raise funds on the stock market.

The support comes at a significant cost to the three banks who will pay a combined €470 million in dividends each year to the Government over the duration.