Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 98: To ask the Minister for Finance if he will extend the banking guarantee; the cost to the Exchequer for doing so; and if he will make a statement on the matter. [19104/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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As the Deputy will be aware, in my Supplementary Budget speech on 7 April I announced that the Government intends to put a guarantee in place for the future issuance of debt securities with a maturity of up to five years. Work is currently underway to deliver this commitment which is subject to State aid approval from the European Commission. An amendment to the Credit Institutions Financial Support Act 2008 will be required which it is intended to introduce in the course of the current Oireachtas session.

As I stated on 7 April last, access to longer-term funding in line with the mainstream approach in the EU will contribute significantly to supporting the funding needs of the banks and to securing their continued stability.

As is the case for the current CIFS guarantee the covered institutions will pay a fee for the State guarantee so no cost is expected to arise for the State other than in respect of the cost of administering the arrangement.

Kathleen Lynch (Cork North Central, Labour)
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Question 99: To ask the Minister for Finance his views on his first six month review of the performance of the bank guarantee and the appropriateness of its charging model; the arrangements for the next six month review; and if he will make a statement on the matter. [18951/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Under paragraph 8 of the Credit Institutions Financial Support the Minister for Finance may review and vary the terms and conditions of the Scheme to ensure that it is achieving the purposes of the Credit Institutions Financial Support Act, 2008. The Scheme states that at such a review, the Minister shall consider, inter alia, the continued requirement for the provision of financial support under the Scheme with regard to its objectives and section 2(1) of the Act. This review is currently being finalised with a view to formal submission to the EU Commission as required under the Scheme.

The next review of the Scheme for State aid purposes is due by October 2009 at the latest.

Paragraph 22 of the Scheme relates to the Minister's role in reviewing on a six month basis the application of the guarantee charging model to ensure that it supports the achievement of the purposes of the 2008 Act and the recovery of the aggregate cost to be borne by the State as a consequence of the provision of the guarantee. This review of the basis of the application of the charging model is expected to be completed shortly to ensure that the guarantee charge yields the full expected amount.

Jack Wall (Kildare South, Labour)
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Question 100: To ask the Minister for Finance his views on reports that Anglo Irish Bank will require upwards of €2.5 billion in extra capital in order to repair its balance sheet; the way he proposes to finance an increase in capital at Anglo Irish Bank; the prospective timescale for such a capital injection; and if he will make a statement on the matter. [18966/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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My Department is in ongoing discussions with Anglo Irish Bank on a range of matters, including the bank's capital position. To date, no significant direct cost has arisen to the Exchequer in respect of the nationalisation of Anglo.

As the Deputy may be aware, the main exposures at Anglo relate to lending for Land and Development and connected exposures. As for all banks, the treatment of such assets held by Anglo is currently being examined in the context of the establishment of the National Asset Management Agency. The Government has stated that support will be provided as necessary to Anglo, consistent with EU State aid requirements.