Michael D Higgins (Galway West, Labour)
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Question 107: To ask the Minister for Finance if he will comment on reports that Anglo Irish Bank is set to post record losses in the region of €10 billion to €12 billion for the 15 month period to the end of 2009; if he would expect further asset write-downs at Anglo Irish Bank during the 2010 accounting period; if there are implications for the balance sheets of two banks (details supplied) arising from the Anglo Irish Bank write-downs; and if he will make a statement on the matter. [11660/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Anglo Irish Bank is currently preparing its accounts for the fifteen month period to 31 December 2009. These accounts have not been finalised and it would therefore not be appropriate for me to comment on these in view of the commercial sensitivities involved. In terms of write downs, I would note that these are booked by financial institutions, based on defined accounting and legal requirements, and are impacted by a range of factors including the position of an institution's different borrowers, the financial structure and collateral position of the institution's loans, and relevant financial market conditions as well as the general economic position. Assessments on write downs are consequently a matter for each individual financial institution and its auditors, taking into account its accounting and legal obligations.

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. I am currently assessing the scale of any further capital support for Anglo Irish Bank in the light of the emerging accounting end year financial position of the bank, and the likely impact of the NAMA transfers over the course of 2010. As I stated in my Second Stage speech on the NAMA Bill 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 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 institutions with an appropriate level of capital to continue to meet their requirements.