Gerry Adams (Louth, Sinn Fein)
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To ask the Minister for Finance if he will confirm whether the sale of Irish Bank Resolution Corporation assets as consideration for redeeming the aggregate principal of National Assets Management Agency bonds means on a net basis the total cost on the Irish State from IBRC could be higher than the €25 billion estimated by the now former chairman of IBRC Alan Dukes in October 2012 if those assets were to be sold at the aggregate principal of NAMA bonds; if he will confirm if the special liquidator will have regard for the capital provisions that were in place prior to the liquidation of IBRC in the disposal of its assets; if he will publicly detail the total nominal independent valuation of the IBRC assets in advance of the asset disposals taking place; if he will detail the gap between the capital provisions for the assets that were in place prior to IBRC’s liquidation and the total nominal value of the assets after independent valuation.; and if he will make a statement on the matter. [8282/13]

Michael Noonan (Limerick City, Fine Gael)
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It is too early in the process to speculate on the potential financial outcome of the liquidation process. However, I can confirm to the Deputy that due consideration was given, in preparatory work on the liquidation of IBRC and the legislation passed earlier this month, to ensuring the best possible outcome for the Irish taxpayer. As part of the role of the liquidators, the assets of IBRC will be valued independently before being sold. Any assets not sold to third parties at or above the valuation price will be sold to NAMA at the independent valuation. This ensures a ‘floor’ price on the assets of IBRC and that where required, assets with limited sale potential can be worked through in the medium term by NAMA rather than sold at any price. The Government’s approach in this area is consistent and focused on the best outcome.

Regarding the valuation process, at this stage of the special liquidation the liquidators are engaged in intensive processes which involve inter alia, asserting control over the businesses, processes, systems and personnel of IBRC. It is important that focus is placed on assessing, reorganising and restructuring the day–to-day activities of the Bank to meet the primary objective of ensuring the purpose of the special liquidation is achieved, as this is key to ensuring that value is extracted from the liquidation.

Gerry Adams (Louth, Sinn Fein)
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To ask the Minister for Finance if he will provide granular detail on a transactional and cash basis on the way the Bank of Ireland was repaid or is to be repaid for its one year repurchase agreement with the Irish Bank Resolution Corporation that was due to expire in June 2013; if he will confirm further to his public statements on RTE radio on the 8 of February 2013 that the Government bonds which the Central Bank of Ireland has agreed to sell are tranches of the Irish government bond that was owned by IBRC but held by Bank of Ireland; if he will detail after the liquidation of IBRC who became the economic owner of the Irish Government bond issued to IBRC in March of 2012 and held by Bank of Ireland in a repurchase agreement with IBRC; and if he will make a statement on the matter. [8283/13]

Michael Noonan (Limerick City, Fine Gael)
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The repurchase transaction entered into by Bank of Ireland and IBRC was a commercial agreement and had been explained to the Bank’s shareholders in a comprehensive 89 page circular sent to shareholders, with the transaction having been approved by shareholders at an EGM. The State, having been deemed a Related Party to the transaction, under Stock Exchange rules, did not vote its 15% shareholding at that EGM. As part of the transactions relating to the Liquidation of IBRC, the bond repo agreement between IBRC and Bank of Ireland was terminated on a no gain/no loss basis and the Central Bank acquired the bond.

I can confirm that the Irish Government Bonds which the Central Bank has committed to sell include the 2025 Irish Government Bond that was owned by IBRC but held by Bank of Ireland.

This bond will be placed in the trading portfolio of the Central Bank, along with the bonds acquired in exchange for the Promissory Notes. The Central Bank will sell these bonds but only when such a sale is not disruptive to financial stability. The Central Bank have undertaken that minimum of bonds will be sold in accordance with the following schedule: €0.5bn by the end of 2014, €0.5bn per annum from 2015 to 2018, €1bn per annum from 2019 to 2023 and €2bn per annum from 2024 onwards.

Gerry Adams (Louth, Sinn Fein)
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To ask the Minister for Finance if the National Assets Managment Agency will or has already acquired the Exceptional Liquidity Assistance Master Loan Repurchase Agreement from the Central Bank of Ireland and therefore the loan assets assigned as collateral under the MLRA facility with Irish Bank Resolution Corporation which in June 2012 amounted to €5.9 billion; if he will confirm if NAMA has not acquired the Exceptional Liquidity Assistance Master Loan Repurchase Agreement from the Central Bank of Ireland whether the Central Bank of Ireland is now the owner of these loan assets assigned as collateral; and if he will make a statement on the matter. [8285/13]

Michael Noonan (Limerick City, Fine Gael)
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The Minister for Finance in a Direction issued to NAMA pursuant to Section 13 (1) of the Irish Bank Resolution Corporation Act 2013 on 7th February required it to enter into a Deed of Assignment and Transfer with the Central Bank of Ireland on or about the 22nd February 2013. The intention is that NAMA will execute the Deed of Assignment and Transfer during the week beginning 18th February 2013. However, at the time of the IBRC liquidation the funding agreements in place between IBRC and the Central Bank of Ireland with respect to ELA consisted of the Special Master Loan Repurchase Agreement and the Facility Deed. There was no funding advanced to IBRC under the Master Loan Repurchase Agreement when IBRC was liquidated.

Gerry Adams (Louth, Sinn Fein)
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To ask the Minister for Finance if he will detail the total amount of ELA debt that was provided to Irish Bank Resolution Corporation as consideration for the Facility Deed with IBRC before its liquidation; if he will confirm that the Anglo Irish Bank Annual Report and Accounts 2010 description of the Facility Deed with the Central Bank of Ireland as an unsecured loan facility guaranteed by him, who separately benefits from a counter indemnity from the bank should the guarantee be called upon is the correct description of this arrangement between the bank and the Central Bank of Ireland up until the liquidation of IBRC; if he will confirm that this Ministerial Guarantee and counter indemnity to honour this guarantee has now been called upon as a result of the IBRC liquidation and NAMA enforcing its security; if he will confirm that the counter indemnity from IBRC to him for the now repayment of National Assets Management Agency bonds issued as consideration for the Facility Deed ELA associated debt is indemnified against all of the assets on IBRC’s balance sheet except those assets which were secured as collateral against the Master Loan Repurchase Agreement and the Special Master Loan Repurchase Agreement between the Central Bank of Ireland and IBRC; and if he will make a statement on the matter. [8286/13]

Michael Noonan (Limerick City, Fine Gael)
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At the time of the IBRC liquidation the funding agreements in place between IBRC and the Central Bank of Ireland with respect to ELA consisted of the Special Master Loan Repurchase Agreement and the Facility Deed. The amount of funding advanced to IBRC at the time of liquidation was c.€40 billion. There was no funding advanced to IBRC under the Master Loan Repurchase Agreement when IBRC was put into liquidation. The description in the 2010 Annual Report with respect to the Facility Deed was correct for the funding arrangements in place at the time. However, a floating charge was granted to the Central Bank of Ireland by IBRC over unencumbered assets in October 2012 and the Facility Deed benefits from this floating charge. Previously, part of the ELA outstanding was secured by loan assets under an MLRA. At the time of the appointment of a Special Liquidator to IBRC, the MLRA collateral had been replaced by lending against the Facility Deed and a floating charge over all of the assets on IBRC’s balance sheet.

Following liquidation, the Central Bank will exchange the obligation owing to it under the Facility Deed and the assets on IBRC’s balance sheet under a floating charge, which includes assets previously collateralised under the MLRA, for NAMA bonds which are guaranteed by the Irish Government.

The Ministerial Guarantee has not been called upon with respect to ELA. The Ministerial Guarantee will transfer to NAMA on its acquisition of the Facility Deed from the Central Bank of Ireland.