Ulick Burke (Galway East, Fine Gael)
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Question 137: 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. [37785/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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As the Deputy will be aware, following European Commission approval, €4bn in capital has now been provided to Anglo. This capital was provided to protect the economy from the wider losses that would occur in the event of the failure of the bank, to protect the substantial deposit base in the bank and to prevent the bank becoming a systemic threat to the financial system.

As I stated in my speech on the Second Stage of the NAMA Bill in the Dail on 16 September last, it is likely that some institutions will require additional capital in order to absorb the losses arising from the transfer of their impaired assets to NAMA and in order to maintain appropriate levels of capital. I made it clear that the Government would expect such an institution to explore all available options for raising such capital as it is the Government preference that private market solutions are found and implemented.

However, to the extent that sufficient capital cannot be raised independently or generated internally, the Government remains committed to providing such banks with an appropriate level of capital to continue to meet their requirements. This will be done in a manner consistent with EU State aid rules and the credit needs of the Irish economy. I have recently confirmed this position to the Financial Regulator in the case of Anglo to facilitate the FR in granting Anglo derogations from certain regulatory capital requirements.

The Board of Anglo is currently finalising a restructuring plan which will consider all options for the future of the bank and set out the future strategy for Anglo. The preparation of the restructuring plan by the bank is at an advanced stage and it would not be appropriate to comment on the draft plan at this point. The restructuring plan will be submitted by the end of November to the European Commission for approval under State aid rules.