Written answers

Thursday, 22 April 2021

Photo of Gerald NashGerald Nash (Louth, Labour)
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32. To ask the Minister for Finance his views on whether the policy on the State’s shareholding in the banks (details supplied) should be reviewed given the recent developments and the consolidation within the banking and financial sector; and if he will make a statement on the matter. [21076/21]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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The Government does not see the State as a long-term investor in the banking sector and its policy of selling down its investments in the Irish banks remains unchanged. However, given the extent of these investments, this was never going to be achieved in the short term and was always going to require a series of sell down transactions possibly spread over more than one market cycle.

In relation to the Deputy's question on whether recent events should influence our thinking here, what the country needs is more private sector investment in its banking sector. Government can play an important role in many ways but it should not be a major owner of banks, which is about taking risk and deciding who should get credit and who should not. It is by definition a volatile business where one's investment can be severely impacted or even lost in extremis.

Significant progress has been made in monetising the €29.4bn originally invested in AIB, BOI and PTSB. To date, €19.2bn has been received in the form of sale proceeds, investment income and liability guarantee fees. The Department of Finance reviews opportunities on a continuous basis, to sell its remaining investments in these banks which are currently valued at approximately €5.5bn. Any such sales will be subject to market conditions and will be transacted in a manner which generates the best value for the taxpayer.

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