Dáil Éireann Debate, Tuesday - 6 October 2009
245 Deputy Joe McHugh asked the Minister for Finance if he will make a statement on his assertion in a newspaper (details supplied) on 13 September 2009 that Irish banks have not been able to attract private investment for toxic assets and that we cannot wait forever; the way he knows same; the process which enables him to know same; and if he will make a statement on the matter. [33014/09]
Amharc ar fhreagra246 Deputy Joe McHugh asked the Minister for Finance if he has access to information which shows that banks have been prepared to negotiate with potential investors over the course of the past 12 to 18 months; and if he will make a statement on the matter. [33015/09]
Amharc ar fhreagra248 Deputy Joe McHugh asked the Minister for Finance if he will provide evidence of banks having negotiated with potential investors; if he will substantiate his statement in a newspaper (details supplied) on 13 September 2009 that banks have not been able to attract private investment; if he will clarify whether he has evidence of approaches made to Irish banks by international investors or bidders in the past 12 months; and if he will make a statement on the matter. [33017/09]
Amharc ar fhreagraI propose to take Questions Nos. 245, 246 and 248 together.
I have, as have my officials, on many occasions discussed the issue of private investment in the banks with the senior executives of the covered institutions. I have also had some discussions with representatives of potential investors and I understand that some covered institutions have also engaged in such discussions. For example, AIB has indicated that it has received interest from a third party with a potential interest in taking a minority stake in the bank and that it will continue to explore strategic options including potential investments in the bank. Bank of Ireland has also stated that it believes that, in the event that additional capital is required, it could be generated internally and/or through access to the capital markets. To date, none of these discussions have resulted in any detailed investment proposal. However, the Deputy will appreciate that much of this information is received in confidence and is market sensitive and is a matter in the first instance for the banks themselves.
As the Deputy is aware, I have consistently stated that there is an onus on the banks covered by the bank guarantee scheme to attract private investors. In my recent speech moving the Second Stage of the NAMA Bill, I made it clear that the Government expects institutions to explore all available options for raising additional capital. The removal of the toxic assets from the balance sheets of the banks will go someway to reducing any risk which private investors may perceive in investing capital in the banks. If sufficient capital cannot be raised independently, the Government remains committed to providing the covered institutions with an appropriate level of capital to continue to meet their requirements.
This is to ensure that the banks remain sufficiently capitalised to enable them to lend into the economy.
