Sandra McLellan (Cork East, Sinn Fein)
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Question 43: To ask the Minister for Finance if Irish Bank Resolution Corporation requires the full €47 billion of the promissory note, that is the €30 billion capital and €17 billion interest, in order to pay off its liabilities in full or is the amount required to have its liabilities paid in full a lesser amount; if so, the amount which could result in the winding up of the bank at an earlier date; if so, the date at which those liabilities would be paid under the current schedule; and if he will make a statement on the matter. [9958/12]

Michael Noonan (Limerick City, Fine Gael)
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The interim accounts published by the bank for the 6 months ended 30 June 2011, which are the latest published figures, shows a total liability figure of €50,677 million. In effect this is the amount required to pay off its liabilities in full. In addition a further €3,404 million represents the State's equity in the institution. If one assumes that the assets will cover some of the liabilities, even in a worst case scenario it would not be unreasonable to expect that the full €47 billion might not be required. That said, the Deputy will appreciate that much of the further information requested in the question is subject to external factors and that it is not practical to be definitive in terms of timelines or costs at this point. Suffice to say that the Board of the bank is charged with the work-out of the bank's assets in a manner that will best protect the interests of the State.

However, the framework within which the bank is operating is set out in the EU Commission Decision on the restructuring plan which issued on 29.6 2011. The link below provides access the redacted version of the Decision.

IBRC is working to generate options for the efficient work out of its loan books in accordance with the Bank's approved mandate. This includes examining accelerated disposal where this makes economic sense. Following the timely sale of the majority of the Bank's US loan portfolios, the bank now continues with further detailed analysis of the remaining loans in Ireland and the UK. This analysis will further inform the Board and management team of IBRC on the timing of the next phases of deleveraging. The exact value of its remaining loans will be reported in the Banks annual report and accounts which are due for release next month. The final cost of rescuing the institution is estimated to be within the current capital provided by the State and will predominately be a function of the property markets in Ireland and the UK together with the availability of counterparty liquidity to enable further disposals by way of recoveries, repayments and sales. It will also depend on the outcome of any negotiations on the promissory note between the Government and the EU that are still under way. The estimated timeframe for the resolution of the institution is currently nine years as detailed in the Bank's approved restructuring plans. http://ec.europa.eu/competition/state_aid/cases/239466/239466_1251121_21_3.pdf