Joanna Tuffy
Question:231. Deputy Joanna Tuffy asked the Minister for Finance if he will provide an update on the losses for subordinated and junior bondholders since 2008; and if he will make a statement on the matter. [30409/15]
View answerThursday, 16 July 2015
Questions (231)
Written answers
In the period since 2008, significant burden-sharing has been achieved with subordinated/junior bondholders through Liability Management Exercise (LME) transactions completed by the Covered Banks. The purpose of the LMEs was to create additional core tier 1 capital and to strengthen the quality of the capital base of the Banks.
Prior to the Central Bank's PCAR, burden sharing with subordinated bondholders raised c. €10 billion of capital gains across the Covered Institutions. In the period since this Government came into power, burden sharing with subordinated bondholders has realised an additional c. €5.2 billion greatly reducing the cost of recapitalising the banks and bringing the total to more than €15 billion.
The table sets out the amount of capital raised by the Covered Banks via LMEs since the banking crisis began.
|
€m |
Burden Sharing pre March 2011 |
Burden Sharing post March 2011 |
Total |
|
AIB |
3,121 |
2,053 |
5,174 |
|
BOI |
2,469 |
2,163 |
4,632 |
|
EBS |
227 |
- |
227 |
|
PTSB |
- |
982 |
982 |
|
IBRC |
4,092 |
- |
4,092 |
|
Total |
9,909 |
5,198 |
15,107 |