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Banking Sector

Dáil Éireann Debate, Thursday - 11 December 2014

Thursday, 11 December 2014

Questions (77)

Michael McGrath

Question:

77. Deputy Michael McGrath asked the Minister for Finance if he will issue a public tender for advisers regarding any future sale of AIB; and if he will make a statement on the matter. [47687/14]

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Written answers

As the Deputy will be aware, now that the bank has returned to profit, is on a stable path and has passed the ECB's Comprehensive Assessment, my officials intend to engage with the management team to explore how we can reconfigure the bank's capital structure to make it fit for purpose as the regulatory rules and expectations have changed dramatically in the past couple of years. We therefore need to lay out a plan to position the bank for this new environment. As part of this process we hope to agree a roadmap that will see the bank start to return cash to the State so we begin the process of repaying the taxpayers large investment.

Given this, we are not making any decisions around reducing our ownership in the bank at this stage. If we can deliver on the capital structure work programme next year and everything else develops as we would like, then we may be at the point where we can consider selling some of our shares. 

In light of the size and importance of our AIB investments, we expect to have financial advisors in place early in 2015 to assist us with our decision making around the bank's capital structure.  

In anticipation of the need for advice in relation to our banking investments and indeed to cover other ad hoc assignments which arise, my Department engaged in a process earlier this year that was is in line with the Open Procedure of EU Procurement Legislation and appointed three panels of financial advisers. These panels cover a wide range of financial disciplines including accounting, actuarial, investment banking and corporate finance.  The results of this process were published on my Department's website on the 3rd of October 2014 and further details can be found at   http://www.finance.gov.ie/news-centre/press-releases/advisory-panels-financial-matters   

We recently invited all the firms in "Panel/Lot One" which covers Capital Markets, Strategic, M&A and Restructuring Advice to participate in a further, more streamlined and tailored, tender process relating to AIB. This process is underway and is expected to be completed in the coming weeks.   

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