PAC to focus on cost of bank stabilisation measures as at end 2016

The schedule for tomorrow’s meeting is:

9 a.m. (i) Business of the Committee
(ii) C&AG Report 2016
Chapter 3: Cost of Bank Stabilisation Measures as at end 2016

Committee Chairman Seán Fleming said: “The gross cost of capitalising banks was €66.8 billion, which was funded through the Exchequer and the Ireland Strategic Investment Fund. The Exchequer element included €30.85 billion in the form of promissory notes. In February 2013, following the appointment of special liquidators to Irish Bank Resolution Corporation (IBRC), promissory notes to the value of €25.034 billion which were held by the Central Bank as collateral for lending to IBRC were replaced by government bonds. The Committee will be keen to get an understanding of the implications of the decision to replace the promissory notes with Government bonds.

“We will also examine the financial implications of the decision to dispose of 29% of the State’s shareholding in AIB last year.

“As the investments in the banks were funded by increased borrowing, the State bears additional annual debt service and other related costs. In total, the debt-related cost to the State associated with the investments was around €14.8 billion over the period 2009 to 2016. We will be keen to look at this in further detail.”

The Committee also intends to focus part of its meeting on the IBRC (formerly Anglo Irish Bank) liquidation process and associated costs.

This PAC meeting will start in Committee Room 3 at 9am on Thursday, 14 December 2017.

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Further information on the Committee: