Ireland will help national banks
21 January 2009The government of Ireland invests 5,5 billion euro in three national banks of the country, having received packages of preference shares of these financial institutions in exchange. Bank of Ireland and Allied Irish Banks will receive €2 billion. They will give to authorities 25 percent packages of preference shares, on which will pay 8 % of profit annually. The third financial establishment, Anglo-Irish Bank, will receive from the government €1,5 billion in exchange for preference shares, on which dividends at the rate of 10 % will be paid annually.
Possession of preference shares of this bank will give the new proprietor the right to operate 75 % of voices of this credit organization. According to terms of transaction all banks can redeem shares at the price of release within the nearest five years. Then the price of the repayment will grow on 25 %.
Minister of Finance of Ireland has expressed hope, that shares of the cabinet on recapitalization of the largest players of bank sector can become a positive signal to the market about stability of financial system of the country: yesterday for short time at the tenders of the London stock exchange quotation of Bank of Ireland, Allied Irish Banks and Anglo-Irish Bank’ papers have grown on 41,3, 17,98 and 7,27 % accordingly.
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