Pension Provisions

Dáil Éireann Debate, Tuesday - 27 November 2012

Tuesday, 27 November 2012

Questions (244)

Pearse Doherty

Question:

244. Deputy Pearse Doherty asked the Minister for Finance further to reports that Allied Irish Bank has confirmed that the first tranche of €700 million book value of loan assets transferred to the group pension fund in August 2012 as part of the total transfer of €1.1 billion book value loan assets resulted in a loss on these loan assets of €300 million, if he will confirm the loss incurred on the transfer to the AIB group pension fund of the remaining tranche of €400 million book value loan assets. [52882/12]

Written answers

Minister for Finance

As disclosed in AIB’s half yearly financial report 2012, the first transfer of loans and receivables, which had a carrying value of €0.7 billion resulted in a loss of €0.3 billion. Any further disclosures in respect of the second transfer of loans and receivables will be disclosed in the Annual Report for 2012 due for release in Quarter 1 2013. I have been informed that all the assets transferred had been scheduled for deleveraging within the Group’s Non-Core portfolio. The discount levels on the transfers, conducted at fair value, were in line with the levels assumed as part of the PCAR exercise in 2011.