Dáil Éireann Debate, Wednesday - 8 July 2009
61 Deputy Willie Penrose asked the Minister for Finance the expected State capital injection into Anglo Irish Bank over the 2009 to 2012 period; if he proposes to fund such capital injections from the National Pensions Reserve Fund, from the central fund or from other resources; the amount of capital which has been injected by the State to date in 2009; and if he will make a statement on the matter. [27959/09]
Amharc ar fhreagraAs the Deputy will be aware the Government decided to provide up to €4bn by way of capital injection to Anglo Irish Bank. €3bn of this amount was provided from the Central Fund to the Bank for capital purposes on the 29 June 2009. The balance of up to €1bn will be provided subject to agreement on a proposed buy-back of Anglo debt aimed at improving the Bank's Core Tier 1 capital position.
The future capital needs of the Bank are not clear. This depends on a number of factors. The picture will become clearer when arrangements on the transfer of assets to NAMA are finalised. The economic climate and the performance of the remaining loan book will also be determinants of the future capital requirements of the Bank.
As already indicated the capital injection in May was made directly from the Central Fund. Since nationalisation Anglo Irish Bank shares are no longer trading in regulated markets and as a result the Bank has ceased, by definition, to be a "listed credit institution" for the purposes of the Investment of the National Pensions [No. 7.] Reserve Fund and Miscellaneous Provisions Act 2009. It follows, therefore, that the National Pensions Reserve Fund is not an appropriate vehicle for the transfer of funds to the Bank.
