Brian Hayes (Dublin South West, Fine Gael)

The Central Bank of Ireland does not disclose the value of the IBRC's liabilities to it. However, details of Anglo Irish Bank's primary sources of funding are disclosed in the former bank's interim report for the six months to 30 June 2011 which are accessible at the following link. The accounts will be updated in the IBRC annual report and accounts for 2011 due for publication at the end of March.

As at 30 June 2011 the figure for the Anglo Irish Bank interim accounts, adjusted to include an estimated figure for the INBS, was about €45 billion for deposits from banks, primarily central banks, which provides an approximation of the total liability of the bank to the Central Bank at the time. This figure is expected to reduce to circa €40 billion in the annual accounts which represents the gross cost to the Exchequer to repay the liability to the Central Bank of Ireland as of that date.

In addressing the question of the net amount that would be required by the bank from the State to pay the total liability to the Central Bank of Ireland it is necessary to look at how the work-out of the remaining assets and liabilities might provide some offset to the liability to the Central Bank of Ireland. At this time it is not possible, with any degree of accuracy, to indicate what the figure, if any, might be. The restructuring plan agreed between the Irish authorities and the European Commission required the IBRC to be capitalised for a work-out of the assets over ten years. The capital provided for the IBRC by the State totalled €34.7 billion which was financed by €4 billion in cash, €100 million for the special investment share and €30.6 billion, that is, €25.3 billion for Anglo Irish Bank and €5.3 billion for the INBS, in the promissory note which carries an interest coupon. The amount of money required by the IBRC to repay total liabilities, including liabilities to the Central Bank of Ireland, over this period is subject to material uncertainty and market factors which include the expected timing of asset recoveries and sales, which are dependant on property prices, especially in the United Kingdom and Ireland; the volume and timing of maturing funding commitments and deposits; and projected interest rates within the euro area. http://www.ibrc.ie/About_us/Financial_information/Latest_interim_report/Interim_Report_2011.pdf.

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