Bank of Ireland shareholders have voted to back a transaction which will allow the Government pay the IBRC/Anglo promissory note with a bond instead of cash.

At today's EGM in Dublin today, the bank's CEO Richie Boucher admitted that it was not a riskless transaction.

99.98% of shareholders at the meeting approved the measure.

The Government is giving IBRC a bond, which is being refinanced with the Bank of Ireland which itself is refinancing it with the ECB. 

The transaction avoids the State paying the €3 billion promissory note from the Exchequer.

The bank will make €36.4m from facilitating the deal.

Bank of Ireland's Richie Boucher said there was a risk from a catastrophic overnight default by the Government but he added that was why the bank was being paid a margin.