Arthur Morgan (Louth, Sinn Fein)
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Question 50: To ask the Minister for Finance the reasons behind the additional €2 billion capital contribution to Anglo Irish Bank; if he will be required to adjust the promissory note to Anglo Irish Bank again; if there will be an adjustment of the promissory note to Anglo Irish bank above €10.3 billion; if so, the amount of same; if there is a cap on the amount that can be adjusted on the promissory note; and if he will make a statement on the matter. [24529/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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As indicated in my Banking Statement on 30 March 2010 Anglo Irish Bank will need further capital which could be of the order of €10bn. On 31 May 2010 an additional €2bn in capital support was provided to Anglo Irish Bank. This took place by way of an adjustment to the existing Promissory Note of €8.3bn which issued to the Bank on the 31 March 2010. This brings the total value of the Promissory Note to €10.3bn. As set out in my Banking Statement, it is clear that the bank will have a further capital requirement in 2010, which it is expected will be met by increasing the value of the Promissory Note. The bank's assessment is that an additional capital requirement of approximately €10bn is projected to arise in respect of the bank reflecting such factors as the need to cover additional capital requirements depending on the haircut on forthcoming transfer of assets to NAMA, the scale of the losses arising on the remainder of Anglo's loan book, and any capital costs arising under a restructuring of the bank. As the Deputy will appreciate, EU State aid approval would be required as appropriate for any amount above that approved by the European Commission thus far.

Lucinda Creighton (Dublin South East, Fine Gael)
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Question 51: To ask the Minister for Finance the amount that each of the Irish banks included in the recapitalisation plan of 30 March 2010 has lent to small business this year; and if he will make a statement on the matter. [25689/10]

Lucinda Creighton (Dublin South East, Fine Gael)
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Question 59: To ask the Minister for Finance if each of the Irish banks have achieved their requirements for lending to small business as set out under the recapitalisation plan of 30 March 2010; and if he will make a statement on the matter. [25688/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 51 and 59 together.

In the context of NAMA and the associated recapitalisations I sought further contributions to economic recovery from the banks. In my statement on 30 March I announced further specific lending targets on the main business banks, AIB and Bank of Ireland. They will make available for targeted lending not less than €3 billion each for new or increased credit facilities to SMEs in both 2010 and 2011. The two banks have each submitted SME lending plans for 2010 and 2011 in light of the €3 billion target. These plans are being reviewed by my officials and Mr. John Trethowan, the Credit Reviewer and are the subject of ongoing discussions. Banks are expected to make the credit available immediately and not to wait until the plans are finalised. In the context of last year's recapitalisation, both my officials and the Financial Regulator receive quarterly reports in relation to the lending commitments made by AIB and Bank of Ireland. The most recent report I have covers the first quarter of 2010 and it shows that AIB lent €618m to SMEs while Bank of Ireland advanced €582m.

Bernard Allen (Cork North Central, Fine Gael)
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Question 52: To ask the Minister for Finance the discussions he has had with the EU regarding the package of recapitalisation proposals for banks (details supplied). [24751/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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In accordance with EU State aid requirements, my officials formally notified the European Commission of the recapitalisation of Bank of Ireland and Allied Irish Banks on 11 March 2009 and 22 April 2009, respectively. In both cases the Commission concluded that the measures in question constituted State aid pursuant to the relevant state aid articles of the EC Treaty. Consequently, both banks were required 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 and the Allied Irish Banks Plan was submitted on 13 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. It is too early to assess when final approval of the restructuring plans for this institution will be granted by the Commission.