Dáil Éireann Debate, Tuesday - 16 April 2013
275. Deputy Stephen S. Donnelly asked the Minister for Finance the total value of Irish pension funds on deposit, or in any other financial product, on the books of the Irish Bank Resolution Corporation at the time of liquidation under the Irish Bank Resolution Corporation Bill 2013; and if he will make a statement on the matter. [16579/13]
View answer276. Deputy Stephen S. Donnelly asked the Minister for Finance the total write-down in the value of Irish pension funds due to the liquidation of the Irish Bank Resolution Corporation under the Irish Bank Resolution Corporation Bill 2013; and if he will make a statement on the matter. [16580/13]
View answer277. Deputy Stephen S. Donnelly asked the Minister for Finance the number of individual pension funds, that is persons, affected by the liquidation of the Irish Bank Resolution Corporation under the Irish Bank Resolution Corporation Bill 2013; and if he will make a statement on the matter. [16581/13]
View answer278. Deputy Stephen S. Donnelly asked the Minister for Finance if he will publish the analysis done prior to the liquidation of the Irish Bank Resolution Corporation under the Irish Bank Resolution Corporation Bill 2013 on the effect of the liquidation on Irish pension funds held by IBRC; and if he will make a statement on the matter. [16582/13]
View answerI propose to take Questions Nos. 275 to 278, inclusive, together.
As the Deputy is aware, I am not in a position to advise on the specifics of any accounts with IBRC (in liquidation). I have been informed that there are a number of customer accounts that may not be entitled to full compensation under the deposit guarantee scheme, DGS, or the eligible liabilities guarantee scheme, ELG, due to the nature of the products or deposit options in which those account holders invested. At the time that such products were offered there was no additional guarantee provided by the State in respect of those products. It was always the case that the ELG scheme covered only those liabilities which were entered into during the issuance window.
I have been advised that the total value of Irish pension funds placed on deposit with Irish Bank Resolution Corporation at the time of liquidation was in the region of €1m. This could exclude any funds placed on deposit with the Bank in client accounts opened on behalf of beneficiaries, where these beneficiaries are Irish pension funds. The total value of Irish pension fund deposits is currently under review with the respective Guarantee Scheme Operators, regarding consideration for payment under the respective schemes. The total number of individual pension funds with funds placed on deposit with Irish Bank Resolution Corporation at the time of liquidation was 23. Again, this could exclude any pension funds who are the beneficiaries of client accounts opened on their behalf.
Through the liquidation process, the proceeds from the disposal of IBRC's assets will be used to repay creditors in accordance with normal Companies Acts priorities and consequently, preferred creditors will be paid first and then debt purchased by NAMA from the Central Bank will be paid. If there are proceeds available after repayment in full of the NAMA debt, these proceeds will be applied to remaining unsecured creditors. This would include depositors to the extent that their deposits are unguaranteed.
The following information was provided under Standing Order 40A
As indicated in my response, the total value of Irish pension funds places on deposit with IBRC at the time of liquidation was in the region of €1 million. I am advised that this could exclude any funds placed on deposit with the bank in client accounts opened on behalf of beneficiaries, where these beneficiaries are Irish pension funds. I am further advised that the total number of individual pension funds with funds placed on deposit with IBRC at the time of liquidation was 23.
Officials in my Department did not and do not have access to this level of information in relation to individual account holders and as such I am advised that it was not possible to conduct specific analysis on the impact of the liquidation on these types of deposits in advance of the liquidation.
As already indicated, the respective guarantee scheme operators are currently reviewing these deposits in regard to their eligibility for payment under these schemes.
