Brian Lenihan Jnr (Dublin West, Fianna Fail)

The Deputy asks a number of very pertinent questions. On the question of an announcement about the capitalisation, as I indicated already to the House, the first round of the NAMA valuations are approaching completion. At that stage, once the first round of NAMA valuations are announced, there will then be an actual estimated position in regard to each institution. Deputies will recall that last September I gave an estimated figure of the potential NAMA liability or cost of acquiring the assets. That was, of course, an estimate, as I have pointed out on many occasions, and was subject to the necessary bottom-up valuations required in the legislation. The first round of those bottom-up valuations will be ready at a later stage this month. At that stage, the position will be far more institutionally specific than it was in the context of the announcement in February 2009, when there was an industry-wide announcement. It will be necessary to consider capital questions in regard to all institutions at that stage. In regard to capital, the regulator has a vital role in prescribing what the appropriate level of regulatory capital is for each institution.

Deputy Burton asked wider questions about Anglo Irish Bank. Its structural plan is with the European Commission. By virtue of restrictions that are already in operation at European level, there is a considerable amount of restriction on the amount of lending which the bank can do as a State-aided bank. Those structural discussions are still taking place with the European authorities.

It is important to bear in mind in regard to Anglo Irish Bank that it was essential and in the interests of the national economy that this bank be stabilised. The impact of the NAMA legislation will be a substantial downsizing in the loan book of Anglo Irish Bank and, at that stage, we will be in a position to take a view on its future.

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