Michael Healy-Rae (Kerry South, Independent)
Link to this: Individually | In context | Oireachtas source

97. To ask the Minister for Finance his views on reports that AIB will not be able to repay the €3.5 billion it owes to the State; and if he will make a statement on the matter. [29184/13]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

AIB's €3.5bn of preference shares are only part of the State's overall investment in the bank and they count towards the bank’s capital ratios. They are perpetual instruments and as such are not a loan in the sense of having a fixed maturity date. The decision to inject capital in the form of preference shares dates back to early 2009 and reflected economic and financial conditions as they were then. As the State now also owns 99.8% of the equity in the bank and a €1.6bn holding of contingent capital, these investments are best viewed and analysed on a holistic basis. To date no decision has been made to convert any of AIB's preference shares or indeed make any other changes to the bank’s capital structure. I remain very supportive of the bank’s efforts to return itself to profitability and ultimately generate an exit for the taxpayer from these investments in the years ahead. As such I will consider any sensible recommendations that are made to me in relation to the bank's capital structure that will help deliver these aims.