Pearse Doherty (Donegal South West, Sinn Fein)
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To ask the Minister for Finance if he will provide an explanation of the €25 million payment of promissory notes shown in the July 2012 Exchequer statement. [38518/12]

Michael Noonan (Limerick City, Fine Gael)
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I am informed that the €25 million payment of promissory notes shown in the July 2012 Exchequer statement which the Deputy refers to relates to the EBS Building Society. The State has injected a total of €875 million in capital into this institution to meet regulatory requirements. Of the total amount, €625 million was by way of two separate subscriptions for Special Investment Shares while €250 million was provided by means of a Promissory Note. The terms of the Promissory Note provide, inter alia, that ten per cent of the amount outstanding as at the end of 2010 shall be paid each year (every 17 June) until the note is paid off in full. This payment was fully factored into the 2012 Exchequer deficit estimate. Under Eurostat rules the full amount of the Promissory Note was included in Ireland's General Government Deficit and Debt in 2010.

Pearse Doherty (Donegal South West, Sinn Fein)
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To ask the Minister for Finance if he will provide an explanation of the €300.273 million receipts under the heading of Interest on Contingent Capital Notes shown in the July 2012 Exchequer statement. [38519/12]

Michael Noonan (Limerick City, Fine Gael)
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I am informed that the €300.273 million in receipts shown in the July 2012 Exchequer statement relate to interest payments on the Contingent Capital Notes the State invested in AIB, BOI and PTSB as part of the recapitalisations completed in last year. In July 2011 the State purchased €3 billion in Contingent Capital Notes in these banks (€1.6 billion in AIB, €1 billion in BOI and €0.4 billion in PTSB) as part of the recapitalisations. These Contingent Capital Notes are subordinated Tier 2 debt instruments with a five year and one day maturity and are convertible into ordinary shares in the event of the bank's Core Tier 1 capital ratio falling below 8.25%. The Notes carry a fixed mandatory interest rate of 10% of the issue price payable annually.

The first of these payments which total €300.273 million was made to the Exchequer in July 2012.