Jimmy Deenihan (Kerry North, Fine Gael)
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Question 56: To ask the Minister for Finance his proposals for recapitalising Anglo Irish Bank; his assessment of the funds involved; his plans for sourcing these funds; and his views on the adequacy of the strategic plan of the bank. [27905/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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As the Deputy will be aware the Government decided to provide up to €4bn by way of capital injection to Anglo Irish Bank. €3bn of this amount was provided from the Central Fund to the Bank for capital purposes on the 29 June 2009. The balance of up to €1bn will be provided subject to agreement on a proposed buy-back of Anglo debt aimed at improving the Bank's Core Tier 1 capital position.

The future capital needs of the Bank are not clear. This depends on a number of factors. The picture will become clearer when arrangements on the transfer of assets to NAMA are finalised. The economic climate, the performance of the remaining loan book will also be determinants of the future capital requirements of the Bank.

As already indicated the capital injection in May was made directly from the Central Fund. Since nationalisation Anglo Irish Bank shares are no longer trading in regulated markets and as a result the Bank has ceased, by definition, to be a "listed credit institution" for the purposes of the Investment of the National Pensions [No. 7.] Reserve Fund and Miscellaneous Provisions Act 2009. It follows, therefore, that the National Pensions Reserve Fund is not an appropriate vehicle for the transfer of funds to the Bank.

The Board of the Bank have not, as yet, finalised their Business plan. As part of the EU Commission State Aid approval for the injection of capital, the Bank has to prepare and submit a detailed restructuring plan. This will be done in consultation with my Department and the Financial Regulator and EU approval will also be needed.