IRELAND - Almost €4bn ($6.8bn)of National Pension Reserve Fund (NPRF) assets invested in Bank of Ireland and Allied Irish Bank last year has been written off, a government report confirms.
The annual report of the Comptroller and Auditor General shows that up to the end of 2010, the NPRF invested €11.35bn in Ireland's two biggest banks. However, as a result of an impairment loss of €3.7bn, the investment value fell to €7.6bn.
By the end of 2010, the NPRF held 36% of the ordinary share capital in Bank of Ireland (BoI) and 49.9% of the voting ordinary shares in Allied Irish Banks Plc (AIB), the report said.
"In 2011, the value of the directed investments has been further impaired," the report said. "By the end of July, the value of ordinary shares held as part of the investments had fallen from the end-December 2010 values by 67% (Allied Irish Banks plc) and 72% (Bank of Ireland)."
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