The Deputy is aware that under the Relationship Framework the Board of the bank is responsible for the day to day operations of the bank including the funding of the bank. I have not directed IBRC nor have I invited that institution directly to take voluntary losses on its subordinated notes other than when the named institution was invited to participate in IBRC’s liability management exercise in 2010. IBRC has a contractual obligation to pay interest and principal on the notes. The US$165m Subordinated Notes Series A due on 29 September 2015 currently bear interest at three month LIBOR plus 0.92% per annum.
Interest payments made since 29 December 2010 to date are as follows:-
- $504,411.60 29-Dec-10
- $504,409.95 29-Mar-11
- $517,595.10 29-Jun-11
- $491,557.92 29-Sep-11
- $536,043.85 29-Dec-11
- $623,852.39 29-Mar-12
- $586,390.75 29-Jun-12
- $575,825.25 29-Sep-12
The US$35m Subordinated Notes Series B due 29 September 2017 bear interest at 4.80% per annum to 28 September 2012 and thereafter reset at three month LIBOR plus 0.93% per annum.
Interest payments made since 29 December 2010 to date are as follows:-
- $840,000.00 29-Mar-11
- $840,000.00 29-Sep-11
- $840,000.00 29-Mar-12
- $835,333.34 29-Sep-12
I have been advised that the Bank cannot confirm the amount the named institution paid for the notes, as it was not a party to the transaction, nor the date, on which the institution purchased the notes.