Richard Bruton (Dublin North Central, Fine Gael)
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Question 56: To ask the Minister for Finance when dividends on preference shares in a bank (details supplied) are due to be paid; and the terms on which he will acquire shares if these cannot be paid. [24694/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The first coupon payment due on the State's €3.5 billion investment in the named bank was due to be paid on 13 May 2010. As the Deputy is aware, the European Commission, indicated whilst the required restructuring plan was under assessment, that in line with its policy on state aid no coupon payments on the named bank's tier 1 and tier 2 capital instruments should be paid unless under a binding legal obligation to do so.

Accordingly, the named bank issued to the National Pensions Reserve Fund Commission 198,089,847 ordinary shares in lieu of the annual €280 million cash payment on the Fund's preference share investment. The allotment of the ordinary shares represent the amount of the preference share dividend due on the 13 May 2010 divided by the average share price in the 30 trading days prior to that date.

The next coupon payment on the shares arises on 13 May 2011. At this stage, it is not possible to say whether the State's investment will be remunerated by way of cash or the issuance of shares.