BoI seeks court order to pay €214m state dividend

BANK of Ireland has sought a court order confirming an €800 million reduction in its stock premium fund in order to pay a €214m dividend to the state’s National Pension Reserve Fund as provided for in the scheme to recapitalise the banks.

Paul Sreenan, counsel for the bank, yesterday applied to Mr Justice Peter Kelly to transfer the bank’s petition for the fund reduction to the Commercial Court.

The court was told the reduction has no adverse implications for the bank’s solvency, will not prejudice the rights of its creditors or members, and, after reduction, the balance in the stock premium account would be €4.299 billion.