Can someone clarify what the position is regards the government's stake in BOI and AIB?
Is it the case that the government gave each bank €3.5 billion on the basis that if this is not paid back in 4 years, then it takes a 25% stake in the bank.
Also, this €250 million worth of shares (16%) has now been taken instead of cash. How does that work? Is it volume of shares that is equvilant to value of €250 million at todays market price and that these can go up or down over time, so we may end up getting less than 250 million back?
Is it the case that the government gave each bank €3.5 billion on the basis that if this is not paid back in 4 years, then it takes a 25% stake in the bank.
Also, this €250 million worth of shares (16%) has now been taken instead of cash. How does that work? Is it volume of shares that is equvilant to value of €250 million at todays market price and that these can go up or down over time, so we may end up getting less than 250 million back?