Joan Burton (Dublin West, Labour)
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Question 63: To ask the Minister for Finance if, in view of the evolution in their respective share prices and the recent events impacting on the global financial sector, it may be necessary to review the decision to invest the €7 billion in preference shares (details supplied); and if he will make a statement on the matter. [12334/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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As I have noted previously, the Government's approach to recapitalisation has been structured and considered and based on a detailed assessment of the institutions concerned.

The Financial Regulator engaged PricewaterhouseCoopers to examine the capital position of the institutions covered under the Guarantee Scheme. This examination included an assessment of the level of impairment of assets under various stress scenarios. A further assessment of the market values of land and development assets was carried out by Jones Lang LaSalle to complement this work. Following the completion of the Government's due diligence exercise, which is currently being finalised, the proposals will be put to EGMs of both banks over the coming weeks.

The recapitalisation of the institutions in question addresses both the expectations of international markets on the Irish bank's capital levels, and strengthens the ability of institutions to cope with impaired loans in conjunction existing reserves and retained profit from performing loans and other trading activities.

The share price of an institution reflects a broad market assessment of a business or sector and the objective of the recapitalisation is not to support the share price but to support the stability of the institution concerned. The current depressed share prices of banks internationally indicate an uncertainty over the future operation and earning potential of banks globally and this is no different for the institutions referred to by the Deputy. In this regard the Government has indicated that it is committed to ensuring the stability of the Irish financial system and protecting systemic institutions.

Pat Rabbitte (Dublin South West, Labour)
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Question 64: To ask the Minister for Finance the recent discussions, negotiations or other activities undertaken by him or his officials with respect to the recapitalisation of banks (details supplied); if he will provide an estimate of the cost to the Exchequer of such recapitalisation; if it is his intention to fund such recapitalisation; if it is his intention to fund such recapitalisation by utilising assets held in the National Pensions Reserve Fund. [12328/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Government is in discussions with the covered institutions referred to including with regards to their respective capital positions and in relation to the review of the guarantee scheme. The Government will bring forward proposals to strengthen these institutions if required. As previously announced, capital is available, through the National Pension Reserve Fund, or otherwise and subject to terms and conditions, as appropriate. Any possible capital requirement for these institutions would be substantially less than that for the two main banks.