Pearse Doherty
Question:61. Deputy Pearse Doherty asked the Minister for Finance if he will lay before Dáil Éireann the audited or unaudited accounts for Irish Bank Resolution at 31 December 2012. [7728/13]
View answerIBRC Liquidation
Questions (61, 62)
Pearse Doherty
Question:62. Deputy Pearse Doherty asked the Minister for Finance if he will outline the arrangements that will apply for the publication of audited accounts for Irish Bank Resolution Corporation for the year ended 31 December 2012. [7729/13]
View answerWritten answers
I propose to take Questions Nos. 61 and 62 together.
I have been advised by the Special Liquidator that no audited accounts will be required to be published for Irish Bank Resolution Corporation for the year ended 31 December 2012. The Minister for Finance does not intend to lay the unaudited accounts at 31 December 2012 before Dáil Éireann.
IBRC Liquidation
Questions (63)
Pearse Doherty
Question:63. Deputy Pearse Doherty asked the Minister for Finance if he will confirm the treatment of equity in Irish Bank Resolution Corporation and if it will be returned to the State; if so when; and if he will make a statement on the matter. [7730/13]
View answerWritten answers
As the Deputy will be aware, on 5 February 2013 the Oireachtas passed legislation (Irish Bank Resolution Corporation Act 2013), appointing joint Special Liquidators to IBRC (with immediate effect to wind up its business and operations. The normal Companies Act’s priorities will apply in this liquidation process. The proceeds from the disposal of IBRC’s assets will be used to repay creditors subject to the normal legal priorities.
If there is any residual equity in IBRC following the completion of the liquidation process and payment of all creditors, this will be returned to the State as the owner of IBRC.
IBRC Liquidation
Questions (64)
Pearse Doherty
Question:64. Deputy Pearse Doherty asked the Minister for Finance if it is a term of the arrangement to replace the promissory notes in Irish Bank Resolution Corporation, that IBRC must remain a corporate entity for the duration of the replacement sovereign bonds, that is, until 2053. [7731/13]
View answerWritten answers
As the Deputy will be aware, following the passing of the IBRC Act 2013 last week, IBRC has now been put into liquidation with Special Liquidators appointed to manage the process. Upon appointment of the Special Liquidators the Central Bank of Ireland became economic owners of the Promissory Notes which have now been replaced with a portfolio of Irish Government bonds. As such, there is no connection between the duration of the Irish Government bonds issued to replace the Promissory Notes and the period for which IBRC must remain a corporate entity. The Special Liquidators are working to wind down IBRC in an expedient a manner as possible and this is expected to occur in a much shorter time period than the duration of any of the bonds issued.
Question No. 65 answered with Question No. 54.
Government Bonds
Questions (66)
Pearse Doherty
Question:66. Deputy Pearse Doherty asked the Minister for Finance the amount of interest that will be paid in each of 2013, 2014 and 2015 on the sovereign bonds that replace the promissory notes; and if he will make a statement on the matter. [7733/13]
View answerWritten answers
As the Deputy will be aware the Irish Government Bonds that have been issued in exchange for the Promissory Notes are floating rate bonds. The coupon on these bonds is 6-month Euribor plus a margin ranging from 2.50% to 2.68%. Given the nature of this floating rate it is impossible to be accurate with regard to the exact interest cost in 2013 to 2015. As part of the explanatory information that was released by the Department of Finance in relation to the transaction last week, estimates were produced which showed an interest expense of €750 million for 2013, €875 million for 2014 and €950 million for 2015. A copy of this presentation is available on the Department of Finance website under the following link: http://www.finance.gov.ie/viewdoc.asp?DocID=7543
It was also highlighted in this presentation that the interest costs shown were best estimates.
Government Bonds
Questions (67)
Pearse Doherty
Question:67. Deputy Pearse Doherty asked the Minister for Finance the net present value of the bonds that will replace the promissory notes and the net present value gain in this arrangement; and if he will make a statement on the matter. [7734/13]
View answerWritten answers
As the Deputy will know, the Promissory Notes were replaced with a portfolio of long term non-amortising Irish Government bonds as a result of undertaking last week’s transaction. The net present value of the portfolio of bonds is €25bn which is equal to the par value of the Promissory Notes that they have replaced. With regard to the net present value gain in this arrangement, as the Deputy is aware, the calculation of a net present value is based on a number of mathematical assumptions, including what discount rate to apply and assumptions around future refinancing rates, all of which will depend upon the outcome of future events. These assumptions can have a material impact on the ultimate valuation and it is subject to a wide range of possible outcomes. For that reason, the Department did not produce a net present value figure for publication last week and I am not in a position to give one now. I can assure the Deputy that a key determinant of the value of the new arrangement was debt sustainability.
Question No. 68 answered with Question No. 54.