Tommy Broughan (Dublin North East, Labour)
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Question 29: To ask the Minister for Finance his views on whether claims that Anglo Irish Bank requires in the region of €5.7 billion in order to restore its capital levels to international and regulatory norms are valid; his further views on winding down the institution over further recapitalisation; if he will comment on the announcement by the European Union Competition Commissioner's head of cabinet (details supplied) that a very radical solution could be necessary for Anglo Irish Bank; the estimated Exchequer cost of each of these scenarios; and if he will make a statement on the matter. [44860/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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As the Deputy will be aware I stated in my Second Stage speech on the NAMA Bill on 16 September last that 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 also made clear in the speech to the extent that sufficient capital cannot be raised independently or generated internally that the Government remains committed to providing such banks and building societies with an appropriate level of capital to continue to meet their requirements in a manner consistent with EU State aid rules and the credit needs of the Irish economy.

As the Deputy will be aware based on the information provided by me in mid-September to this House, the scale of Anglo's NAMA-eligible loans are such that they will give rise to a further capital requirement for the State. However, the specific requirement for capital for the bank will only become evident following further progress in the implementation of the NAMA.

On 30 November last the bank submitted its Restructuring Plan to the European Commission. This was a condition for State aid approval of the bank's recapitalisation earlier this year. The submission of the plan marks the beginning of a detailed and comprehensive evaluation of the plan in advance of any final decision by the Commission on the plan. This will require extensive consultation and dialogue between the Commission, the Irish authorities and the bank. I am committed to working closely with the Commission and the bank on the assessment of the plan to achieve the best possible outcome for the State from this process.

The Deputy will understand that in view of the commercial sensitivities involved it would not be appropriate for me to make any comment on any detailed elements of the plan including the projected costs of any particular scenarios in the plan.

Finally the comment referred to by the Deputy is in fact aligned with the Commission's requirements for all restructuring plans as set out in the relevant Commission guidelines which states that restructuring plans must examine and assess all options for the future of an institution.