Written answers
Thursday, 29 March 2012
Department of Finance
Banks Recapitalisation
1:00 pm
Michael McGrath (Cork South Central, Fianna Fail)
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Question 76: To ask the Minister for Finance the gross cost to date of the bank recapitalisations, the breakdown of this between cash injections from the Exchequer and the National Pensions Reserve Fund to date and the outstanding balance on the promissory notes; the amount received to date by the Exchequer under the financial support scheme and the eligible institutions guarantee; and if he will make a statement on the matter. [17470/12]
Michael Noonan (Limerick City, Fine Gael)
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The bank recapitalisation commitments made by the State to date are set out in the following table:
| €bn | AIB/EBS | BoI | IL&P | IBRC (Anglo/INBS) | Total |
| Government preference Shares (2009) - NPRF | 3.5 | 3.5* | - | - | 7.0 |
| Capital contributions (with Promissory Notes as consideration) /Special Investment Shares (2010) – Exchequer ** | 0.9 | - | - | 30.7 | 31.6 |
| Ordinary Share Capital (2009) – Exchequer | - | - | - | 4.0 | 4.0 |
| Ordinary Share Capital (2010) - NPRF | 3.7 | - | - | - | 3.7 |
| Total pre-PCAR 2011 (A) | 8.1 | 3.5 | 0 | 34.7 | 46.3 |
| PCAR 2011: | AIB/EBS | BoI | IL&P | Anglo/INBS | Total |
| Capital from Exchequer*** | 3.9 | - | 2.7 | - | 6.5 |
| NPRF Capital | 8.8 | 1.2 | - | - | 10.0 |
| Total PCAR (B) | 12.7 | 1.2 | 2.7 | - | 16.5 |
| Total Cost of Recap for State (A) + (B) | 20.7 | 4.7 | 2.7 | 34.7 | 62.8 |
| * €1.7bn of BoI's government preference shares were converted to equity in May/June 2010 (€1.8bn still left in existence). The government also received €0.5bn from the warrants relating to BoI's preference shares (excluded from table above). | |||||
| ** The IBRC amount is made up of a total capital contribution for Anglo / INBS of €30.6bn and a special investment share of €0.1bn (INBS). The Anglo / INBS capital contribution impacted in full on the GGB in 2010. The consideration for the Anglo / INBS capital contribution was €30.6bn of promissory notes. These Promissory Notes are an amount due from the State to IBRC. Each year, on 31 March, €3.06bn is paid by the Exchequer to Anglo / INBS as part of the scheduled repayments of the promissory notes. The first such repayment was made on 31 March 2010. | |||||
| *** The Exchequer cost of the 2011 BoI recap is shown net of share sale to private investors (Completed in October, 2011) |
Please note that these figures only represent the capital committed to recapitalising these institutions and they do not take account of revenues received directly or indirectly from the banks.
It should also be noted that the total cost of the recapitalisations would have been significantly higher were it not for the burden sharing achieved with holders of subordinated debt in each of the institutions.
The outstanding balance on the Promissory Notes as of today, 29 March 2012, is €28,093,970,591 of which €4,851,774,452 relates to the former INBS.
A total of €2,855.9 million has been received into the Exchequer to date in fees and interest accrued from the covered banks. This is made up of €763.7 million in respect of the Credit Institutions Financial Support Scheme (CIFS) which operated from 30 September 2008 to 29 September 2010, and €2,092.2 million in respect of the Eligible Liabilities Guarantee Scheme (ELG) which covers the period the participating institutions signed up to the scheme typically since February 2010 to end December 2011.
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