Written Answers - Financial Institutions Support Scheme.

Thursday, 11 December 2008

Dáil Eireann Debate
Vol. 670 No. 3

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  61.  Deputy Joanna Tuffy  Information on Joanna Tuffy  Zoom on Joanna Tuffy   asked the Minister for Finance  Information on Brian Joseph Lenihan  Zoom on Brian Joseph Lenihan   the outcome of his recent discussions in Farmleigh with Irish banking executives, public servants, Irish and international investors; the individuals involved in these discussions; and if he will make a statement on the matter. [45370/08]

Minister for Finance (Deputy Brian Lenihan): Information on Brian Joseph Lenihan  Zoom on Brian Joseph Lenihan  The Government’s Guarantee Scheme has been successful in safeguarding the stability of the Irish banking sector and in restoring its liquidity position. To ensure the effective implementation of the Scheme, and to ensure that covered institutions are meeting their obligations under the Scheme, my officials and I are in regular contact with the covered institutions. In addition, the Central Bank and Financial Regulator are consulted on the implementation of the Scheme on an ongoing basis.

I have met with the CEO and Chairpersons of the covered institutions and asked them to examine their options to attract or raise private capital to underpin their long term sustainability and support their lending to the economy. These discussions have been productive and informative. I have also met with a number of investment businesses in recent weeks. Parties with serious propositions for investment in an institution are of course referred to the institutions concerned.

In certain circumstances it would be appropriate for the State, through the National Pensions Reserve Fund or otherwise, to consider supplementing private investment with State participation, where in doing so the aim of securing the financial system can be better met. The relevant institutions have agreed that they will work closely with potential investors and the Government to develop matters further.

As part of monitoring ongoing compliance with the terms of the Bank Guarantee Scheme, and in assessing proposals to raise capital levels in the covered institutions, I have consulted with my legal and financial advisors as well as other interested stakeholders as appropriate. It would not be prudent for me to elaborate further on these market sensitive discussions.

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