Results 2,801-2,820 of 26,021 for speaker:Kieran O'Donnell
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of IBRC: Discussion (31 Oct 2012)
Kieran O'Donnell: The promissory note was based on flows back - that is, a discounted value of funds that flowed over a period of time back to a current market value. This has huge significance in terms of the cost of the banking recapitalisation to the State. Was the residual value built into the estimated cost at the time of €34.7 billion? I am sure the delegates understand the point I am raising here.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of IBRC: Discussion (31 Oct 2012)
Kieran O'Donnell: In the limited time available to me, I have put a straightforward question. This is a critical point.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of IBRC: Discussion (31 Oct 2012)
Kieran O'Donnell: The point I am making is that if the expected residual value of €8 billion was not factored into the valuation of the promissory note, there is an opportunity now to factor it in.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of IBRC: Discussion (31 Oct 2012)
Kieran O'Donnell: Was it €8 billion?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of IBRC: Discussion (31 Oct 2012)
Kieran O'Donnell: Was it much less?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of IBRC: Discussion (31 Oct 2012)
Kieran O'Donnell: It was €4 billion rather than €8 billion. This means that in the context of our deliberations with Europe, there is now an additional €4 billion to play around with. That should be factored in as part of our efforts to bring down the overall cost of the promissory note to the State.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of IBRC: Discussion (31 Oct 2012)
Kieran O'Donnell: I accept that. However, the fact remains that the residual value has increased by €4 billion over the estimate at that point in time.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of IBRC: Discussion (31 Oct 2012)
Kieran O'Donnell: I am merely soliciting information to enable me to make the proposal.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of IBRC: Discussion (31 Oct 2012)
Kieran O'Donnell: For me, it is very straightforward. There would seem to be a window of opportunity at this moment in time in that the estimate of the residual value is now €4 billion greater than it was at the time the promissory note was put in place. That is the point I am making. Unfortunately, my time is up. It has been a good six minutes.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of IBRC: Discussion (31 Oct 2012)
Kieran O'Donnell: Mr. Dukes may have touched on this already but I refer to the scenario in which he maintains it would be possible to wind up Anglo Irish Bank earlier. Second, is IBRC required to maintain the same capital ratios as a normal commercial bank?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of IBRC: Discussion (31 Oct 2012)
Kieran O'Donnell: It was more on the aspect whereby Mr. Dukes spoke of maintaining the capital base. Were IBRC not required to maintain the capital ratio at the same level, it would provide opportunities for the State.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of IBRC: Discussion (31 Oct 2012)
Kieran O'Donnell: With a fair wind, how early could IBRC wind down?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of IBRC: Discussion (31 Oct 2012)
Kieran O'Donnell: And from NAMA.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of IBRC: Discussion (31 Oct 2012)
Kieran O'Donnell: Mr. Aynsley has suggested IBRC could more than halve its loan portfolio by the end of 2014.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)
Kieran O'Donnell: I thank Deputy Mathews for his grace in allowing me to go ahead of him. I appreciate that. I welcome Mr. Duffy and his colleagues. I wish to raise two points. If I am correct, he said that of the €3.5 billion, to date, €600 million of that was new lending. Is that up to the end of September?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)
Kieran O'Donnell: Time is limited. I remember when the banks were recapitalised and I was there for all of it. How much has the Irish taxpayer put into AIB at the moment? That is a point that has not arisen today. What is that figure?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)
Kieran O'Donnell: The sum of €20 billion is just slightly less than the Department of Social Protection's budget, and is about two thirds of our annual tax take. The money was given to AIB on the proviso that it would bring about lending in the real economy. I have spent the greater part of my adult life working with SMEs, but AIB is not lending to SMEs. I have as many of them coming to me now as I...
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)
Kieran O'Donnell: I do not see the point in being here if we do not have a robust debate. Mr. Duffy has a job to do and he has come in here, but equally the figures do not lie.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)
Kieran O'Donnell: That is fine and I appreciate that.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)
Kieran O'Donnell: Will Mr. Duffy explain why the figure is so low?