By Business & Finance 
AIB shareholders are meeting this morning to discuss the capital reorganisation of the bank and its proposed State repayment plan.
Since 2008 AIB has paid around €3bn to the State by way of fees related to the Government guarantees and coupon payments on the preference shares and contingent capital notes. With the repayment of the capital to the Government, the proposed captial scheme could see the bank go from being State-owned to private ownership.
Richard Pym, chairman of AIB said, “Today is about specific business that’s critical to the bank’s recovery and normalisation. The proposed capital reorganisation will both strengthen and simplify our capital structure, allowing us to reflect market and regulatory norms, and position us for a transition, over time, from State to private sector ownership.”
AIB received a bailout of €20.8bn from the State after the economic crisis in 2008. The bank has said it expects to repay all of this money over time. “These proposals are designed to provide a solid capital base for the company to ensure its future success,” Pym added.
AIB shareholders will vote on 12 resolutions that will have the effect of the bank paying the €1.7bn to the State in part-payment for the preference shares held by the Government. The balance of these shares will be converted into ordinary shares.
