Dáil Éireann Debate, Thursday - 7 July 2011
71 Deputy Michael McGrath asked the Minister for Finance when a detailed plan, including a detailed timeline for the achievement of various milestones, for the downsizing and deleveraging of AIB is to be finalised. [19365/11]
View answer73 Deputy Michael McGrath asked the Minister for Finance when a detailed plan, including a detailed timeline for the achievement of various milestones, for the downsizing and deleveraging of Bank of Ireland is to be finalised. [19367/11]
View answerI propose to take Questions Nos. 71 and 73 together.
Allied Irish Banks (AIB) and Bank of Ireland (BoI) submitted detailed deleveraging plans for the three years to the 31 December 2013 to the Central Bank of Ireland (CBI) as part of the Financial Measures Programme, which was announced on 31 March 2011. These plans outlined how the institutions would achieve a loan-to-deposit ratio of 122.5% by end 2013. To monitor progress, semi-annual interim targets have been set for each of the institutions and progress against these targets will be reported every six months. The first reporting date by the institutions to the CBI is 31 December 2011.
Subsequent to 31 March 2011, AIB and BOI were required to provide alternative deleveraging options to account for the fact that the transfer of sub-EUR 20 million land and development loans to NAMA will now no longer take place. These plans were submitted to the CBI in May 2011.
