The European Commission has approved the Government's €3.5 billion capital injection into Bank of Ireland, saying the measure had enough safeguards not to distort competition.
'In addition to difficulties caused by the global financial crisis, recent developments with regard to the sharp decrease of Bank of Ireland's shares' value increased the need to reassure the financial markets of the bank's stability,' the Commission said.
The European Union competition regulator had been advised of the plan on March 11. The package has restrictions on the payment of dividends and curbs on executives' pay, among other conditions.
The bank will need to submit a restructuring plan within six months to the Commission for approval.
Bank of Ireland shareholders are due to vote tomorrow on whether to accept the state bailout.
