Clare Daly (Dublin North, Socialist Party)
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Question 65: To ask the Minister for Finance the reason the Irish State, via the Irish Bank Resolution Corporation, paid full value €2.5 billion to a company (details supplied) even though the prospectus clearly stated that if Irish Nationwide was not in a position to pay, then the investors would lose. [26273/12]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy is aware the Board of the bank is responsible for the day to day operation of the bank. Nonetheless, the Deputy may wish to note that the company referred to in the question was an independently rated funding vehicle set up by INBS that enabled INBS to access low cost funding from the ECB. It was fully consolidated into INBS and all securities issued by that company were held by INBS. Therefore at no time were any securities sold to external investors. The structure was unwound at no gain or loss to IBRC in April 2012 as the particular securities no longer met ECB criteria and therefore the bank was no longer able to access low cost ECB funding.