P J Sheehan (Cork South West, Fine Gael)
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Question 83: To ask the Minister for Finance if he plans to recapitalise building societies (details supplied). [19065/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The institutions to which the Deputy refers are covered under the Government's guarantee Scheme. This has led to increased scrutiny and oversight of the operations of the institutions and to increased engagement with its management including with regard to each of the institution's capital positions.

As the Deputy will be aware, the Government announced on 7 April 2009 its intention to establish a National Asset Management Agency (NAMA). Assets will be transferred from participating institutions to NAMA with the purpose of ensuring that relevant institutions have a clean bill of health, their balance sheets are strengthened and uncertainty over bad debts is reduced.

The Government will consider the position of relevant institutions on an individual basis in the light of the proposed establishment of NAMA, the capital requirements of the institutions concerned and the requirement to protect the position of the taxpayer. In bringing forward the necessary legislation to establish NAMA and the details that will govern its operation, further discussions will be undertaken with the relevant institutions including the institutions referred to by the Deputy where their participation in NAMA and their future capital positions will be discussed on an individual basis.