Pearse Doherty
Question:299. Deputy Pearse Doherty asked the Minister for Finance if he will provide an explanation of the €25 million payment of promissory notes shown in the July 2012 Exchequer statement. [38518/12]
View answerTuesday, 18 September 2012
Questions (299)
Written answers
I am informed that the €25 million payment of promissory notes shown in the July 2012 Exchequer statement which the Deputy refers to relates to the EBS Building Society. The State has injected a total of €875 million in capital into this institution to meet regulatory requirements. Of the total amount, €625 million was by way of two separate subscriptions for Special Investment Shares while €250 million was provided by means of a Promissory Note. The terms of the Promissory Note provide, inter alia, that ten per cent of the amount outstanding as at the end of 2010 shall be paid each year (every 17 June) until the note is paid off in full. This payment was fully factored into the 2012 Exchequer deficit estimate. Under Eurostat rules the full amount of the Promissory Note was included in Ireland's General Government Deficit and Debt in 2010.