Willie Penrose (Longford-Westmeath, Labour)
Link to this: Individually | In context

Question 31: To ask the Minister for Finance if he will provide an update on the progress being made with the viability and business plans for the credit institutions covered by the bank guarantee submitted to the EU Commission for consideration; when he expects opinions to be issued by the Commission in relation to each of the credit institutions concerned; and if he will make a statement on the matter. [25610/10]

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

Under EU State aid requirements the financial institutions which were recapitalised by the State; Allied Irish Banks, Anglo Irish Bank and Bank of Ireland, were obliged to submit restructuring plans to the European Commission within six-months of receiving Government assistance. The Bank of Ireland Plan was submitted to the Commission on 30 September 2009, the Allied Irish Banks Plan was submitted on 13 November 2009, and the Anglo Irish Bank Plan was submitted on 30 November 2009.

Considerable discussion, dialogue and exchange of information is continuing in respect of the restructuring plans that have already been submitted as the Commission undertake their assessment of the plans in line with the applicable state aid rules. Negotiations in respect of the Bank of Ireland plan are at an advanced stage, and a decision is expected from the European Commission by mid-2010. AIB has adjusted the content of its plan to reflect the new capital requirements announced by the Financial Regulator in March, while Anglo Irish Bank, on foot of a request by the Commission, submitted a revised plan on 31 May 2010. It is too early to assess when final approval of the restructuring plans for these institutions will be granted by the Commission.

The Deputy may also wish to note that, as I indicated in my Banking statement of 30 March 2010, two further financial institutions – EBS and INBS due to their participation in NAMA and recent recapitalisations are required to submit restructuring plans to the Commission. The EBS plan was submitted to the Commission on 31 May 2010, and the INBS plan will be submitted by 22 June.