Tuesday, 19 February 2013

Questions (251)

Michael McGrath

Question:

251. Deputy Michael McGrath asked the Minister for Finance the status of the promissory note issued to re-capitalise EBS; if he is considering restructuring same; and if he will make a statement on the matter. [8211/13]

View answer

Written answers (Question to Finance)

The Deputy will be aware that the State has injected €875m of capital into the EBS Building Society (EBS) in order for it to meet regulatory requirements. Of this total amount, €625 million was by way of two separate subscriptions for Special Investment Shares, while €250 million was provided by means of a Promissory Note.

The terms of the EBS Promissory Note provide, inter alia, that ten per cent of the amount outstanding as at the end of 2010 shall be paid each year until the note is paid off in full. This equates to €25 million per annum, with the next annual payment to be made on 17 June 2013.

Given that the EBS Building Society was acquired by Allied Irish Banks (AIB), a continuing pillar bank in the Irish economy, compared to the wind-down situation at IBRC, the Government is not currently considering a restructuring of the EBS Promissory Note.