Joan Burton (Dublin West, Labour)

I refer to the Minister's investment of €7 billion on behalf of the taxpayer into Bank of Ireland and Allied Irish Banks through this preference share structure. Is the dividend on these preference shares a cumulative preference dividend so that the dividend rights accrue until such time as the banks ever pay a dividend, when that dividend comes first?

Under the new arrangements announced by the Department last evening the NTMA will take over the management of the Minister's shareholding in the credit institution. The National Pensions Reserve Fund, which is also under the remit of the NTMA, provided these funds. Will it be the NTMA's decision from hereon as to whether or not the option on converting the arrears of preference dividend into ordinary shares is taken up?

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