Billy Timmins (Wicklow, Fine Gael)
Link to this: Individually | In context

Question 172: To ask the Minister for Finance the position regarding a matter (details supplied); and if he will make a statement on the matter. [23180/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

The Financial Regulator has identified the recapitalisation requirement of EBS at €875 million to enable it to meet its regulatory capital requirements.

A total of €100m of capital was provided on 27 May 2010 in return for the issue to the Minister of special investment shares (SIS) in the society. The remaining capital requirement of €775 million may be reduced through a liability management exercise as announced today by the Society. The balance of the capital requirement will be met through a combination of possible private capital investment and, to the extent that private capital investment is not forthcoming in the near term, partly or fully through the issuance of a Promissory Note or Notes from the State to the institution.

The use of a Promissory Note (or Notes) would reduce the impact on the Exchequer this year as the promised capital would be paid over a period of ten to fifteen years.

The State capital investment ensures that the Society is recapitalised in accordance with the Financial Regulator's requirements, and it supports the financial position of the Society in its continued operations as a going concern, including taking deposits and providing mortgages. The rights attaching to the SIS investment give the State majority control and economic rights over the Society, including the right to potential dividends if the Society has sufficient distributable reserves to enable payment. In addition, the proceeds of any future investment in, or sale or merger of, the Society would accrue to the State.

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

Question 173: To ask the Minister for Finance his views on extending the credit appeal mechanism developed for small businesses to also include householders; his further views on developing codes of practice which would give banks guidance as to when they ought to accept requests by mortgage holders to move to interest-only payments for a certain period; and if he will make a statement on the matter. [23189/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

Certain concerns were raised in regard to credit flowing to small businesses arising from the Mazars reports and other sources. Given the key strategic importance of small business to the economy, not least in terms of the numbers employed in the sector, a credit appeal mechanism in the form of an independent Credit Review Office was established in the December 2009 budget. This was a specific measure to deal with a specific issue.

Individual consumers who feel that they have been refused credit on unfair grounds may appeal the decision to their lender. If they are not satisfied with the outcome they may then take their appeal to the Financial Services Ombudsman. The Financial Services Ombudsman is an independent office established to deal with consumer complaints about their dealings with financial institutions. The Financial Services Ombudsman will not attempt to evaluate on the decision of the lender but he may examine the case from a procedural point of view. If procedural flaws are identified, in any given case, the Ombudsman may, for example, instruct the lender to review the decision and to follow the correct procedure.