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Banking Operations

Dáil Éireann Debate, Thursday - 15 November 2012

Thursday, 15 November 2012

Questions (84)

Gerry Adams

Question:

84. Deputy Gerry Adams asked the Minister for Finance if he has any plans to enforce a write-down on subordinated bondholders (details supplied) in Irish Bank Resolution Corporation; the amount paid thus far to the bondholder in interest payments; the amount likely to be paid to them when their bond matures; if he will confirm the amount the bondholder paid for their subordinated bonds in the former Anglo Irish Bank originally; and when these bonds were purchased. [50700/12]

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Written answers

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.

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