Dáil Éireann Debate, Wednesday - 29 September 2010
491 Deputy Thomas P. Broughan asked the Minister for Finance the outcome of the sale of the EBS and its recapitalisation so far; if he has considered retaining the EBS in State ownership until the he can establish a strengthened mutual building society and cooperative model; and if he will make a statement on the matter. [33374/10]
View answerThe Financial Regulator on 30 March 2010 determined that EBS must raise additional equity capital of at least €875 million by the end of 2010.
The State provided EBS in May 2010 with €100 million of capital through the issuance of Special Investment Shares. These Special Investment Shares give the Minister for Finance effective economic control of EBS. A Promissory Note to the value of €250 million was issued to EBS in June 2010 to enable it to meet its capital requirements as loans transfer to NAMA.
The State has committed to meet the remaining capital requirement, to the extent that private capital is not forthcoming. A range of options in relation to the future of EBS have been considered and arising from this consideration, expressions of interest in the Society were invited and a sale/investment process commenced in June 2010.
Interest in the society has since been expressed by a number of parties and proposals have been received. These are being examined by my Department and the NTMA. The outcome of this process should soon be known but it is too soon to anticipate any particular outcome.
