The share price of ING rose sharply on Monday after the Dutch banking and insurance group accepted a €10bn capital injection from the Dutch government to shore up its core capital.

The government will buy a new class of securities that count towards ING’s core Tier 1 capital but have no voting rights and are not dilutive for ordinary shareholders, ING said on Sunday. The group will also scrap its final dividend for 2008, and the executive board will take no bonuses – either in cash or shares – this year. The government will take two of the 12 supervisory board seats.