Dáil Éireann Debate, Wednesday - 3 February 2010
108 Deputy Michael D. Higgins asked the Minister for Finance his views on whether Anglo Irish Bank is an appropriate vehicle for expanding small medium enterprise lending; and if he will make a statement on the matter. [5340/10]
View answerAs the Deputy will be aware, €4bn in capital was provided to Anglo in 2009, to protect the economy from the wider losses that would have occurred in the event of a failure of the bank, to protect the deposit base of the bank, and to prevent the bank becoming a systemic threat to the financial system.
A condition for EU approval of the capital provision to Anglo was that the bank would not engage in new lending for a period of one year, except to existing customers for current projects. This is in line with the objective of stabilising and deleveraging Anglo's balance sheet.
On 30 November last, Anglo Irish Bank submitted its Restructuring Plan to the European Commission, as required under EU State aid rules. In line with EU Commission guidelines, the Restructuring Plan considers all options for the future of the bank, including its potential role in meeting unmet lending needs in the economy.
The submission of the plan marked the beginning of a detailed and comprehensive evaluation process in advance of any final decision by the Commission on the plan. This ongoing process requires extensive consultation and dialogue between the Commission, the Irish authorities and the bank.
The Deputy will understand that in view of the commercial sensitivities involved it would not be appropriate for me to make any comment on any detailed elements of the plan at this stage.
However, as I have stated previously, I am committed to working closely with the Commission and the bank on the assessment of the plan to achieve the best possible outcome for the State from this process.
