Written answers

Thursday, 14 February 2013

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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To ask the Minister for Finance the expected costs under the deposit guarantee scheme of the liquidation of the Irish Bank Resolution Corporation; and if he will make a statement on the matter. [7903/13]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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It is understood that the total deposits held by IBRC was €323 million at 31 January 2013. The Special Liquidator submitted preliminary DGS information to the Central Bank on 12 February which estimates eligible deposits of €123 million. If the threshold for DGS qualification is mechanically applied (i.e. €100,000 per person), the payment in respect of DGS-covered deposits would be just over €30 million. The total DGS pay-out is likely to be significantly lower than this figure, however, after the Special Liquidator excludes accounts such as:-

- Accounts that have been legally pledged as security against other liabilities (in IBRC, NAMA or possibly other third parties);

- Accounts of Large Companies (only Small Companies, as defined in the Companies Act 1986, qualify for DGS pay-out).

It will take some weeks before the final pay-out figure will be known.

The aim of the Central Bank is to pay compensation within 20 working days to depositors who have been duly verified as eligible.

The Central Bank of Ireland maintains a Deposit Protection Account which will be used to fund any Deposit Guarantee Scheme pay-out. The current balance on this account is €388 million and this is funded by credit institutions who contribute 0.2% of their total deposits.

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