Michael McGrath (Cork South Central, Fianna Fail)
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Question 170: To ask the Minister for Finance the value of the promissory notes issued to date in respect of the capital injection in Anglo Irish Bank and Irish Nationwide Building Society; and if he will make a statement on the matter. [39766/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The information requested by the Deputy is set out in the table below in respect of each institution.

*Will depend on Irish Government 10 year bond yield at time of issue

The additional capital required by the two institutions referred to in the Deputy's question which I set out in my Statement on Banking on 30 September will be provided by an increase in the value of the Promissory Notes taking into account the burden sharing achieved in relation to holders of subordinated debt in the two institutions.

Michael McGrath (Cork South Central, Fianna Fail)
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Question 171: To ask the Minister for Finance the amount of the interest liability expected this year and in subsequent years arising from the promissory notes issued in respect of the capital injection in Anglo Irish Bank and Irish Nationwide Building Society. [39767/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Under the current interest terms, it is estimated that the total interest accruing into 2010 in respect of the Promissory Notes issued to date to Anglo Irish Bank, Irish Nationwide Building Society and Educational Building Society is around €560 million. The appropriate accounting treatment of these Promissory Notes under General Government accounting rules is currently under active consideration between the Irish authorities and Eurostat. However, under the current terms of the coupons on the Notes it is estimated that the annual accrued interest element will initially be of the order of €11⁄2 to €1 3⁄4 billion before declining in future years.

The additional capital required by Anglo Irish Bank and Irish Nationwide Building Society which I set out in my Statement on Banking on 30 September will be provided largely by an increase in the value of the Promissory Notes. It is, however, not possible to determine the future interest liability which this will give rise to as it will depend on the appropriate Irish Government 10 Year Bond Yield at the time of issue as well as the outcome of the Irish authorities discussion with Eurostat on the General Government accounting treatment of the Notes.

The impact of the Promissory Notes on the agreed target to achieve a General Government deficit of below 3% of GDP by the end of 2014, and their accounting treatment will be finalised by the Department of Finance in the context of preparations for the Four-Year Plan for Budgets and Economic Growth. However, in broad terms taking account of the Promissory Notes means that the deficit will be impacted by about 1% of GDP over the forecast period.