Written Answers - Banks RecapitalisationThursday, 17 June 2010 |
Dáil Éireann Debate
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84.
Deputy Bernard J. Durkan
asked the
Minister for Finance
the extent of funds provided to support the banking service to date; and if he will make a statement on the matter.
[25986/10]
Minister for Finance (Deputy Brian Lenihan):
On 30 March, the Financial Regulator outlined the new capital requirements for all Irish banks and I made a full statement on the capital needs of the covered institutions. The plans outlined in that statement are currently being implemented.
[753]The Government has provided capital to five banks since the start of 2009 and I will outline these injections by individual institution below. In February 2009, both AIB and Bank of Ireland were recapitalised with €3.5bn each. The funds were provided by a purchase of Preference Shares (Tier 1) by the National Pensions Reserve Fund Commission.
Bank of Ireland has recently completed a capital raising exercise which encompassed a debt-for-equity swap, a placing with institutional shareholders, a conversion of the Government’s preference shares and a rights issue. In all, €3.42bn was raised, €1.76bn was raised from the private sector and €1.66bn by converting that amount of the preference shares. In addition, the NPRFC has received €543m in fees and payments for the warrants and the interest rate on the remaining preference shares has risen from 8% to 10.25%.
The Government nationalised Anglo Irish Bank in January 2009 and has to date put in capital totalling €14.3bn. This comprises a direct capital injection of €4bn and €10.3bn by way of a promissory note payable over ten to fifteen years.
The State on 28 May injected €100m into EBS through a Special Investment Share.
On 31 March, the State subscribed for a Special Investment Share to the value of €100m in INBS and issued a Promissory Note for €2.6bn which will be payable over ten to fifteen years.
| Last Updated: 31/03/2011 18:13:41 |
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