Michael D Higgins (Galway West, Labour)
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Question 132: To ask the Minister for Finance the date on which he intends to proceed with the disposal or merger of Irish credit institutions in which the State has a majority or controlling stake, particularly Irish Nationwide and Educational Building Society; when he expects to make a final decision on any such disposals or mergers; and if he will make a statement on the matter. [1398/11]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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A comprehensive reorganisation and downsizing of the banking sector was agreed under the Programme of Financial Support for Ireland as part of the financial sector reform measures. The State has given an undertaking to divest the stakes it has taken in the banks due to the financial crisis within the shortest timeframe possible which is compatible with financial stability and public finance considerations. Regarding INBS, I had previously indicated in my statement of 30 September 2010 that INBS does not have a future as a stand-alone entity and will have to be sold or amalgamated with another institution. To that end proposals are under active consideration, and will shortly be submitted to the European Commission, that will provide for the resolution and work-out of INBS in a manner that will fully protect its depositors and realise the maximum value for the taxpayer from its non-NAMA assets over time.

In relation to the EBS sales process two bids are now being considered; one from Irish Life & Permanent and the other from an international consortium led by Cardinal Capital Group. The process of final negotiations with these parties is continuing and it would not be proper for me to comment further on the detail at this stage.