As the Deputy will be aware, the Government has announced detailed proposals for the recapitalisation of Allied Irish Bank and Bank of Ireland. As I have noted previously, the Government's approach to the recapitalisation of these institutions has been structured and considered and based on a detailed assessment of the institutions concerned. This included work undertaken for the Financial Regulator by PricewaterhouseCoopers and Jones Lang LaSalle. Following the completion of the Government's due diligence exercise, which is currently being finalised, the proposals will be put to EGMs of both banks over the coming weeks.
The Government is in ongoing discussions with the other covered institutions including with regard to their respective capital positions and in relation to the review of the guarantee scheme. The Government will be bringing forward proposals to strengthen these institutions as required.
As the Deputy will be aware, the Government is also examining how the guarantee Scheme could be revised, subject to European Commission approval and consistent with EU State aid requirements, to support longer-term bond issuance by the covered institutions. Moreover, in consultation with my advisers, I am examining proposals for dealing with risky assets on the balance sheets of relevant institutions.