Tuesday, 19 February 2013

Questions (237, 249, 273)

Ciaran Lynch

Question:

237. Deputy Ciarán Lynch asked the Minister for Finance the status of investments by credit unions in the now defunct Irish Bank Resolution Corporation formerly Anglo Irish Bank; if deposits will be returned on schedule (details supplied); and if he will make a statement on the matter. [9305/13]

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Michael McGrath

Question:

249. Deputy Michael McGrath asked the Minister for Finance if he will respond to a matter raised in correspondence in the context of the appointment of a Special Liquidator at Irish Bank Resolution Corporation (details supplied). [8207/13]

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Seamus Healy

Question:

273. Deputy Seamus Healy asked the Minister for Finance if he will confirm the position of Credit Union Investments in the Irish Bank Resolutions Corporation and if these investments will be repaid in full, particularly since these investment bonds offered 100% capital security through an eight year three months fixed term deposit facility due to mature in September 2013; and if he will make a statement on the matter. [8630/13]

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Written answers (Question to Finance)

I propose to take Questions Nos. 237, 249 and 273 together.

Eligible deposits in IBRC are covered by the joint safeguards of the Deposit Guarantee Scheme (DGS) and/or the Eligible Guarantee Scheme (ELG). Eligible deposits of up to €100,000 for an individual and €200,000 for individuals with a joint account in IBRC are protected by the DGS. Eligible deposits above this limit are guaranteed under the ELG. The majority of the deposits in IBRC are covered under one or both of these schemes.

I am advised by the CBI that certain tracker bonds sold to Credit Unions which were liabilities of IBRC at the time of the liquidation have a structured deposit element which is covered by the Deposit Guarantee Scheme for that element of the product. As a result the first €100k of any claim from these depositors is covered under the DGS Scheme. I have been advised that the Liquidator is aware of a number of depositors who fall outside the eligibility criteria for the ELG Scheme due to the nature of the investment product. Unfortunately, if a deposit is not eligible under the ELG scheme the depositor will rank as an unsecured creditor in the liquidation.