Thomas Byrne (Meath East, Fianna Fail)
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Question 237: To ask the Minister for Finance the expected monetary gain to the State from the State guarantee to the banking sector in the years 2008, 2009 and 2010; and if he will make a statement on the matter. [34916/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Each of the covered institutions covered by the Bank Guarantee Scheme pay a quarterly charge to the Exchequer for its guarantee. For the years in question, I expect to have received the following monies under the Guarantee Scheme: 2008 €110,203,000 2009 €433,401,692 2010 €456,395,308

We intend to collect at least this €1bn from the guaranteed institutions and this figure may be increased as institutions move from the existing guarantee scheme into the proposed revised guarantee scheme shortly to be brought to the Oireachtas.

In addition to the charge for the Guarantee levied on the covered institutions, institutions under the Guarantee are obliged to recoup the administrative costs of the Guarantee to the Minister. To date payments of €2,495,459 have been made, covering the period September 2008 to April 2009. There will be further charges made periodically between now and the end September 2010 when the Scheme is due to end.

Thomas Byrne (Meath East, Fianna Fail)
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Question 238: To ask the Minister for Finance the expected monetary gain to the State from the recapitalisation scheme to the banking sector in the years 2009 and 2010; and if he will make a statement on the matter. [34917/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Both AIB and Bank of Ireland were recapitalised with €3.5bn of Core Tier 1 Capital on 13 May and 31 March respectively. In return the Government has received €3.5bn worth of non-cumulative preference shares. These preference shares pay a fixed coupon of 8% annually. If cash coupon is not paid, then ordinary shares are issued in lieu at a time no later than the date on which the bank subsequently pays a cash coupon on other Core Tier 1 capital. Both banks were also given the option of repurchasing a portion of these preference shares early. Assuming that the outstanding preference shares are not repurchased by the institutions, AIB and Bank of Ireland would each pay an annual coupon in arrears of €280m.

AIB are due to pay their coupon on 13th May 2010 in respect of the year 13th May 2009 to 13th May 2010 and as such they are expected to pay €280m on that date. This will also apply in respect of the same period in the years thereafter. As Bank of Ireland received the recapitalisation money on March 31st 2009 and are due to make their first payment on 20 February 2010, they are expected to pay their pro-rata share which is circa €249m. Thereafter, a full annual coupon would expect to be paid each year on 20 February.