Brian Lenihan Jnr (Dublin West, Fianna Fail)

There is no provision in the recapitalisation agreement for the conversion of the preference shares into ordinary shares. The banks can repurchase at par up to the fifth anniversary of the issue and thereafter at 125% of par. The effect of the restrictions by the banks would be to trigger the dividend stopper provisions of the Government's preference stocks and the pension fund would then become entitled to be issued a number of ordinary shares related to the cash amount of the dividend that would otherwise have been payable should there be no change in these circumstances. That is the position. It may be if the matter is still with the commission on 20 February that it can be left in dry dock until final advice is received from the commission

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