Pádraig Mac Lochlainn (Donegal, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

214. To ask the Minister for Finance the amount of interest that has been paid on the €64 billion Irish State banking bailout of September 2008 in each of the years 2008 to 2021 and to date in 2022, in tabular form; and if he will make a statement on the matter. [61472/22]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The NTMA have informed me that the proceeds of borrowing, as well as revenues such as tax revenue are lodged to the Exchequer account. In general terms, no specific tranches of borrowing were undertaken solely for the purpose of re-capitalising the banking sector. Therefore, it is not possible to accurately quantify that part of the National Debt interest bill that relates to the borrowing undertaken to re-capitalise the banks.

That said, it is possible to identify borrowing undertaken specifically to deal with the re-capitalisation costs of IBRC. Most notably, €25bn of Floating Rate Notes (FRNs) were issued in February 2013 at the time of the liquidation of IBRC. 

The FRNs pay interest every six months (June and December) based on the six-month Euribor interest rate plus fixed interest margins which averaged just over 2.6%. Exchequer interest paid on the FRNs over the period 2013 to end-November 2022 is shown in the tables below.

The interest paid on the FRNs has been declining steadily since 2014, primarily because of the reduction in the outstanding balance of the FRNs. As of end-November 2022, €22bn of the original €25bn had already been bought back by the NTMA and subsequently cancelled.

The office of the Comptroller and Auditor General (C&AG) has – in a number of its Reports on the Accounts of the Public Service – provided estimates of the net cost of banking stabilisation measures. These reports also include estimates of the associated debt service costs. The most recent report, containing estimates as at end-2021, was published earlier this year.

The link to the report can be found here- www.audit.gov.ie/en/find-report/publications/2022/report-on-the-accounts-of-the-public-services-2021.pdf 

Pádraig Mac Lochlainn (Donegal, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

215. To ask the Minister for Finance the amount of capital that has been repaid on the €64 billion Irish State banking bailout of September 2008 in each of the years 2008 to 2021 and to date in 2022, in tabular form; and if he will make a statement on the matter. [61473/22]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The total recapitalisation of the domestic banks amounted to €64.1bn, of which €34.7bn was invested in Anglo Irish Bank and INBS (IBRC) and €29.4bn in AIB, BOI and PTSB. To date, €21.1bn of the investment in the three remaining banks has been recovered in cash by way of disposals, investment income and liability guarantee fees (breakdown by year in tabular form below).

As part of this activity, the State has fully disposed of its investment in BOI. The remaining investments in AIB and PTSB are currently valued at c. €5.4bn leaving a shortfall of c. €2.9bn. The investment in IBRC is largely a sunk cost with a net €1.1bn recovered to date.