Pearse Doherty (Donegal South West, Sinn Fein)
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Question 212: To ask the Minister for Finance the terms on which Bank of Ireland has agreed to finance the Anglo Promissory Note payment that fell due in March 2012, including an analysis of any fees, including professional fees, legal fees, arrangement fees and commissions that will be paid to Bank of Ireland; if the National Assets Management Agency has charged any such fees for the temporary funding of the payment; if his Department has incurred any such fees to date, or if such fees are in prospect. [27942/12]

Michael Noonan (Limerick City, Fine Gael)
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As the deputy is aware the securities repurchase transaction between Bank of Ireland (BoI) and Irish Bank Resolution Corporation (IBRC) is a commercial transaction and is subject to the approval of BoI's shareholders. BoI has issued a circular to their shareholders (the "Circular") and scheduled an extraordinary general court to be held on 18th June 2012. As I advised the Deputy in a response to a recent PQ, the new maturity date of the latest NAMA / IBRC bond is 20th June 2012, which is within the 90 day maximum maturity provided for in my direction issued to NAMA in accordance with Section 14 of the NAMA Act 2009.

The commercial terms of the securities repurchase transaction are set out in the Circular. As set out in the Circular the purchase price of the securities on the purchase date is dependent amongst other things on the market value of the securities on the purchase date. Subject to the approval of BoI's shareholders it is expected that moneys owing to the National Asset Management Agency by IBRC will be repaid on the purchase date.

As set out in the Circular, IBRC's payment obligations under the securities repurchase transaction will be guaranteed pursuant to an existing deed of guarantee dated 29 November 2010, in favour of certain credit institutions and regulated entities which are party to certain agreements with Anglo (now IBRC).

From a NAMA perspective, the current income on the facility is 2.35%. All reasonable legal fees incurred by NAMA in relation to the negotiation, entry into and enforcement of its rights under the agreement shall be borne by IBRC.

My department is not incurring fees in relation to this transaction.