€800m reduction in BoI fund

THE Commercial Court has confirmed an €800m reduction in Bank of Ireland’s stock premium fund to pay a €214 million dividend to the State’s National Pension Reserve Fund as part of the scheme to recapitalise the banks.

Mr Justice Brian McGovern yesterday agreed to the petition for the fund reduction made on behalf of the bank.

The court was previously 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 some €4.299 billion.