Banks Recapitalisation

Dáil Éireann Debate, Wednesday - 28 November 2012

Wednesday, 28 November 2012

Questions (78)

Gerry Adams

Question:

78. Deputy Gerry Adams asked the Minister for Finance further to Parliamentary Question No. 240 of 13 November 2012 if he will confirm the reason he has not sought either voluntary or involuntary write downs from Fir Tree on their subordinated debt holdings of Anglo which are costing the taxpayer interest payments every quarter and will cost taxpayer $200 million by 2017; if he will confirm if Irish Bank Resolution Corporation management has sought voluntary write downs from Fir Tree on their subordinated debt holdings of Anglo and if not if he will consider directing IBRC management to seek voluntary write downs from Fir Tree on their subordinated debt holdings; and if he will make a statement on the matter. [53223/12]

Written answers

Minister for Finance

I have been advised that Fir Tree was invited to participate in IBRC’s liability management exercise in 2010 to take a voluntary loss. However, Fir Tree opted not to participate. If write down opportunities present themselves, they will be considered by the Bank. I have not invited Fir Tree directly or indirectly to take voluntary losses on its subordinated notes. IBRC has a contractual obligation to pay interest and principal on the notes.