Written answers
Wednesday, 20 June 2012
Department of Finance
Banks Recapitalisation
9:00 pm
Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context
Question 55: To ask the Minister for Finance the proportion of the State's holdings in the covered banks which he holds directly and through the National Pension Reserve Fund; and if he will make a statement on the matter. [30045/12]
Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context
The State's holding in AIB and BofI is held through the NPRF, the State's holding in IL&P and in IBRC is held directly by the Minister for Finance. The following table provides comprehensive detail on the State's holdings in the covered banks:
| Current State Ownership | AIB/EBS | BoI | IL&P | Anglo/INBS | Total |
| State Ownership of Ordinary Shares | 99.8% | 15.1% | 99.2% | 100% | n/a |
| Contingent Capital Notes (at cost) | €1.6bn | €1.0bn | €0.4bn | n/a | 3.0 |
| Preference Shareholdings (at cost) | €3.5bn | €1.8bn | n/a | n/a | 5.3 |
These holdings have been raised as a result of the bank recapitalisation commitments made by the State to date; these 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.
No comments