Ciaran Lynch
Ceist:80 Deputy Ciarán Lynch asked the Minister for Finance the cost to the Exchequer and the 2010 cost of providing financial support to Anglo Irish Bank; and if he will make a statement on the matter. [11633/10]
Amharc ar fhreagraWednesday, 10 March 2010
Ceisteanna (52)
Freagraí scríofa
As the Deputy will be aware, €4bn in capital was provided to Anglo in 2009 from Exchequer funds, to protect the economy from the wider losses that would have occurred in the event of a failure of the bank, to protect the deposit base of the bank, and to prevent the bank becoming a systemic threat to the financial system. As I stated in my Second Stage speech on the NAMA Bill on 16 September last, it is likely that some institutions will require additional capital in order to absorb the losses arising from the transfer of their impaired assets to NAMA and in order to maintain appropriate levels of capital. I also made clear in the speech to the extent that sufficient capital cannot be raised independently or generated internally that the Government remains committed to providing such institutions with an appropriate level of capital to continue to meet their requirements.
Based on the information provided by me in mid-September to this House, the scale of Anglo's NAMA-eligible loans are such that they will give rise to a further capital requirement for the State. I am currently assessing the scale of any further capital support for Anglo Irish Bank in the light of the emerging accounting end year financial position of the bank, and the likely impact of the NAMA transfers over the course of 2010.
Question No. 81 answered with Question No. 60.