Bank of Ireland is committed to avoiding full state ownership

BANK of Ireland said yesterday it was committed to averting full state ownership though it could not predict how big a stake the government would have in it after a “bad bank” scheme was implemented.

The bank said the discount to the book value of loans destined for the bad bank should not be greater than the industry average of 30 per cent, in line with its earlier forecast, and more cautious than analysts’ believe is necessary. At a shareholder meeting to vote on its participation in the National Asset Management Agency (NAMA), the bank said the assets, with an expected book value of up to €16bn (£14.3bn), would be transferred from mid February until the middle of 2010.