Written answers

Thursday, 11 December 2008

Department of Finance

Financial Institutions Support Scheme

8:00 pm

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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Question 83: To ask the Minister for Finance the position in relation to the reform, reorganisation and recapitalisation of the Irish banking sector, particularly those institutions covered by the bank guarantee; and if he will make a statement on the matter. [45390/08]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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In my discussions with the covered institutions I have asked all the banks to examine their options to attract or raise private capital to underpin their long term sustainability and support their lending to the economy. I am not promoting or supporting any particular proposal nor would it be appropriate for me to do so. I have however asked all the covered institutions to engage actively with all credible proposals. I am prepared to explore proposals regarding Government participation or involvement that may accompany private investment. Of course, any substantial equity capital raising in a listed bank will require shareholder and regulatory approval.

The Government indicated on 28 November a willingness to participate alongside private investors in the recapitalisation of Irish financial institutions. Talks on this issue are ongoing with the institutions and potential investors. Also not withstanding reports to the contrary, the fact is that, as outlined in my statement of 28 November, I have not asked any institutions to consolidate or merge with any other.

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