Dáil Éireann Debate, Wednesday - 6 March 2013
74. Deputy Patrick Nulty asked the Minister for Finance his estimation of the nominal cost of the Anglo-Irish/Irish Bank Resolution Corporation bonds until 2055 compared with the nominal cost of the Anglo Irish promissory notes to that same date. [11829/13]
View answerAs the Deputy will know, the Promissory Notes were replaced with a portfolio of long term non-amortising Irish Government bonds as a result of the transaction last month. The nominal value of the new bonds is €25bn which is equal to the nominal value of the IBRC Promissory Notes previously. With regard to an estimated comparison of the new arrangement with the Promissory Notes previously, any calculation of cost would be based on a number of assumptions, including what assumed interest would prevail and assumptions around future refinancing rates, all of which will depend upon the outcome of uncertain future events. These assumptions can have a material impact on the ultimate valuations and are subject to a wide range of possible outcomes. For that reason, I am not in a position to provide the Deputy with the estimates he is requesting. I can assure the Deputy that a key determinant of the value of the new arrangement was debt sustainability.
