Written answers

Tuesday, 8 July 2014

Department of Finance

Bank Restructuring

Photo of Stephen DonnellyStephen Donnelly (Wicklow, Independent)
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187. To ask the Minister for Finance the way his Department monitors Bank of Ireland and Allied Irish Banks in their adherence to the terms of the restructuring decisions for those two banks by the European Commission; and if he will make a statement on the matter. [29473/14]

Photo of Stephen DonnellyStephen Donnelly (Wicklow, Independent)
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188. To ask the Minister for Finance the way in which Allied Irish Banks, a bank in which he controls practically all the shares, and Bank of Ireland, in which he controls 14% of the shares, monitor adherence to the terms of the restructuring decisions for those two banks; and if he will make a statement on the matter. [29474/14]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 187 and 188 together.

It is a requirement of the EU Commission that, when a Restructuring Plan is agreed, an independent Monitoring Trustee is appointed. The role of the Monitoring Trustee is to ensure that each of the commitments included in the Restructuring Plan are being adhered to and within the agreed timelines, and to report to the EU Commission on a regular basis - typically quarterly. I can confirm for the Deputy that officials in my Department receive copies of the Monitoring Trustee's report prepared for the EU Commission.

Apart from this formal independent monitoring and reporting requirement, officials in my Department are in regular contact with the banks including monthly meetings with bank senior management. This communication line allows for ongoing dialogue regarding upcoming commitments and progress in this regard.

Photo of Stephen DonnellyStephen Donnelly (Wicklow, Independent)
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189. To ask the Minister for Finance further to the announcement by Bank of Ireland, a bank in which he controls 14% of the shares, that it has disposed of €250 million of par value mortgages presently controlled by the ICS Building Society, if there has been a waiver by the European Commission to the requirement set out in its restructuring decision for that bank; and if he will make a statement on the matter. [29475/14]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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In accordance with its revised Restructuring Plan of July 2013, which allowed it to retain New Ireland, Bank of Ireland agreed to certain substitution measures including that relating to ICS. The specific ICS substitution measure required Bank of Ireland to sell the ICS distribution platform together with, at the option of the acquirer: Up to €1bn of mortgages; and Up to €1bn of matching deposits.

In accordance with the revised Restructuring Plan, Bank of Ireland had until 30th June 2014 to execute this transaction. As the Deputy is aware, Bank of Ireland made an announcement to the stock exchange on 26th June in this regard. The substance of this announcement was that Bank of Ireland had agreed to sell the ICS distribution platform together with a portfolio of €250m gross performing mortgage assets to Dilosk Limited. The full announcement can be found at:. The EU Commission had not granted a waiver to the Bank of Ireland in relation to its ICS commitment and the transaction announced on 26th June is in line with this commitment.

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