Government to delay decision on €1.8bn Bank of Ireland shares

The Government and Bank of Ireland will wait until the Central Bank’s balance sheet assessment of domestic banks is completed before making a decision about the redemption of the €1.8bn in preference shares, say analysts.

Michael Noonan, the finance minister, holds €1.8bn of preference shares in Bank of Ireland, which will step up in value by 25% unless they are redeemed before Mar 31.

Bank of Ireland said it was looking at a number of options in terms of refinancing the preference shares.