Brian O'Shea (Waterford, Labour)
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Question 67: To ask the Minister for Finance if he will estimate the level of loan losses expected to be incurred by Anglo Irish Bank arising from its exposure by a company (details supplied); and if he will make a statement on the matter. [17209/10]

Seán Barrett (Dún Laoghaire, Fine Gael)
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Question 96: To ask the Minister for Finance the discussions he has had with Anglo Irish Bank regarding its relationship with a company (details supplied). [17124/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 67 and 96 together.

At the outset I should state that the relationship between Anglo and the company in question is a commercial one. Under the Relationship Framework put in place under the Anglo Irish Bank Corporation Act, 2009, which governs the relationship between the bank and its shareholder the State, issues relating to the commercial activities at the bank are a matter for the board at the bank in respect of which as Minister for Finance I have no role in day to day management decisions.

It has been well publicised that the bank has a large exposure to the company in question. Consequently the losses the bank might make depend to a large degree on future developments in the company and commercial decisions it makes in managing its commercial relationship with the company and any restructuring of the lending that may take place. In addition, the taking of impairments on loans by Anglo and the timing of those decisions is a commercial matter for the bank. As you will appreciate, in my role as Minister for Finance and consistent with the terms of the Relationship Framework, I have no input into such decisions which are a matter for the management and board of Anglo on the basis of the advice of their auditors in line with international accounting standards.

In summary, therefore, there are a number of commercial options open to Anglo management which could result in a variety of outcomes, making any accurate estimate of ultimate loan losses very difficult at this stage and subject to very significant uncertainties. However, I would expect Anglo to keep me informed of any significant developments which would affect their capital position including any impact, should it materialise, from its exposure to the Quinn Group.