Pearse Doherty (Donegal South West, Sinn Fein)
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270. To ask the Minister for Finance if he will detail the total combined impairment charges provided against the National Assets Management Agency senior and subordinated bonds in Allied Irish Banks, Bank of Ireland and Permanent TSB; if he will detail the total amount in euro of regulatory capital which is currently held by Allied Irish Banks, Bank of Ireland and Permanent TSB as a requirement arising from its holdings of NAMA senior and subordinated bonds; if he will detail if the regulatory changes at a domestic, European or global level may lead to an increase in capital being necessary to hold for banks retaining NAMA bonds; if he will detail the total amount of interest that shall be paid by NAMA to Allied Irish Banks, Bank of Ireland and Permanent TSB on its holding of NAMA bonds in 2013, 2014 and 2015 assuming no redemption of NAMA bonds are made for those 3 years; and if he will make a statement on the matter. [24258/13]

Michael Noonan (Limerick City, Fine Gael)
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I have been provided with the following information from the banks:

AIB

All disclosures in relation to AIB's National Assets Management Agency senior and subordinated bond holdings are contained in pages 267 - 268 of AIB's 2012 Annual Financial Report. Disclosures in relation to AIB's regulatory capital can be found on page 44 of the same report.

The regulatory changes at a domestic, European or global level are not anticipated to lead to an increase in capital being necessary to hold for banks retaining NAMA bonds

Bank of Ireland

Bank of Ireland's annual report for the year to 31 December 2012 gives comprehensive disclosures on its holdings of NAMA Bonds (particularly pages 203-205 and pages 316 - 317) and of its relations with the Irish State (pages 259-262). Bank of Ireland's annual reports for the years ended 31 December 2010 and 31 December 2012 additionally provide comprehensive disclosures on the impairment of NAMA subordinated debt. (Particularly pages 23, 66 and page 125 of its annual report for 2010 and page 192 and pages 204-205 in its annual report for 2012).

Bank of Ireland's Pillar 3 report for the year to 31 December 2012 gives comprehensive disclosures on its Regulatory Capital including amounts held in relation to Sovereign Bonds which includes NAMA Bonds (particularly pages 8-12 and pages 14-15), and the regulatory changes arising as a result of Basel 3 (particularly pages 5 - 6).

PTSB

- ptsb has not held NAMA subordinated bonds.

- ptsb holds NAMA senior bonds but has not taken any impairment provisions against them.

- ptsb currently applies 0% risk weights in calculating the regulatory capital requirement for NAMA bonds. 0% risk weight has been confirmed with Central Bank of Ireland to be used in the capital calculation (The conditions for this being that NAMA senior debt is government guaranteed, denominated in the domestic currency and also funded in that currency).

Interest Rate on NAMA bonds

The interest rate that NAMA pays on the Senior bonds held by the Participating Institutions (PIs) is six month euribor flat and is paid semi-annually on the 1 March and 1 September. Details of current NAMA Senior bond issuance can be found on its website www.nama.ie, which is updated following any redemptions.

The current rate of interest on senior debt, set last March is 0.336%. Based on this rate of interest and no further redemptions, NAMA expects to pay €31m to AIB/ESB, €8m to Bank of Ireland, €4m to PTSB and €1m to the Central Bank of Ireland on 1 September 2013. Based on the same assumptions, the same amount would be paid every 6 months (March & September) in 2014 and 2015. However, NAMA expects to make further redemptions this year which will reduce amount paid and interest rates will vary over time.