Joan Burton (Dublin West, Labour)
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Question 192: To ask the Minister for Finance his views on the recent downgrade of bonds issued by Anglo Irish Bank; the way this is affecting the ability of the bank to raise liquidity or to plan future bond issues; his further views on whether the difference in ratings and yields between Anglo bonds and Irish sovereign bonds and the downgrade is a reflection of the sovereign's ability to meet Anglo's ongoing financial commitments in view of the fact that Anglo is a State owned entity; and if he will make a statement on the matter. [5544/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Deputy will appreciate that the ratings treatment of bonds, whether from commercial or sovereign issuers, is a matter for the ratings agencies concerned, based on their own assessment criteria.

I would also note that, by definition, a range of different elements feed into both the credit rating and yield values of commercial and sovereign debt and straight comparisons between the different values may therefore not be meaningful.

However, with regard to the position of Anglo Irish Bank, I have been clear that, based on the information provided by me in mid-September to the Dáil, the scale of Anglo's NAMA-eligible loans are such that they will give rise to a further capital requirement from the State. The specific requirement for capital for the bank will only become evident following further progress in the implementation of the NAMA. While the assessment of Anglo's further capital requirement is therefore ongoing, the Government is committed to providing such capital to enable the bank to continue to meet its requirements, in a manner consistent with EU State aid rules and the credit needs of the Irish economy. In this context, there is no doubt regarding the Government's commitment to meet the need for further capital support in the case of Anglo Irish Bank.

With regard to any potential impact of ratings treatment on Anglo's ability to raise funding, I would note that Anglo Irish Bank joined the Eligible Liability Guarantee Scheme with effect from 28 January 2010, and this provides additional options for the bank to access funding on the markets with the benefit of a State guarantee. As with the other participating institutions, Anglo pays a quarterly charge in respect of the guarantee provided under the ELG Scheme and the earlier Credit Institutions (Financial Support) Scheme which is also ongoing.