Joan Burton (Dublin West, Labour)
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Question 97: To ask the Minister for Finance his views on recent media reports that he, as sole shareholder, and his Department had agreed at the recent annual general meeting of Anglo Irish Bank to change the institution's articles of association; if he will confirm the veracity of the report; if the directors of Anglo Irish Bank have been indemnified as reported; if he will provide a rationale for the changes; if he will set out the potential impact on the taxpayer that these changes could have; and if he will make a statement on the matter. [22168/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The indemnity now granted to Directors under Anglo's revised Articles of Association is standard, and similar provisions are used in the articles of association of many companies. Also, while certain limitations on indemnification are imposed by Section 200(1) of the Companies Acts, which was disapplied by the Anglo Irish Bank Act 2009, Anglo's revised Articles of Association provide that I, as Minister, retain discretion on any decision to indemnify Anglo Directors beyond the limits laid down under the Companies Acts. I have not given consent for any such extension of indemnity.

Anglo's revised Articles of Association were adopted by resolution at the bank's annual general meeting on 30 April last, as provided for under Section 17 of the Anglo Irish Bank Act 2009. There is no impact on the taxpayer resulting from the changes to Anglo's Articles of Association, save that in the absence of standard provisions the State as shareholder might find it more difficult to fill board positions, to the overall detriment of the taxpayer.

Joan Burton (Dublin West, Labour)
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Question 98: To ask the Minister for Finance if he will outline with reference to his statement to press reporters on 25 May 2009 that he is providing working capital to Anglo Irish Bank, what he means by reference to working capital; the nature and extent of the provision provided under that heading; the difference between Anglo Irish Bank's current need for working capital and any possible future need for an increase in capital; and if he will make a statement on the matter. [22171/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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As the Deputy will be aware, it was announced on 29 May that the Government had decided, subject to EU approval, to provide up to €4bn in capital to Anglo Irish Bank. This decision was taken in a context of disappointing six-month financial results for Anglo, reflecting a marked deterioration in asset quality at the bank. The injection of up to €4bn is necessary to ensure Anglo can meet its total capital requirements in the light of the results. The Government's overriding concern in taking this decision has been to protect the economy from the wider losses that would occur in the event of the failure of the bank; to protect the €64bn of deposits in the bank; and, to prevent the bank becoming a systemic threat to the financial system.

This capital injection will represent the first time that money has been put into Anglo, although the Government had signalled its readiness to do so last December before the bank was nationalised. The Board of Anglo is currently finalising its Business Plan, which will provide a detailed framework within which the bank, with Government support, will work though its current problems.