Dáil Éireann Debate, Wednesday - 10 March 2010
121 Deputy Willie Penrose asked the Minister for Finance the cost to the Exchequer and the 2010 cost of providing financial support to building societies (details supplied); the position regarding the proposed merger of these institutions; and if he will make a statement on the matter. [11632/10]
Amharc ar fhreagraI indicated last September that, following the transfer of eligible bank loans to NAMA, it is likely that institutions will require additional capital. I also stated that, to the extent that institutions are not in a position to raise sufficient capital from other sources, the Government remains committed, consistent with EU rules, to providing relevant banks and building societies with an appropriate level of capital to enable them to continue to meet their regulatory requirements. Both societies informed their members late last year that they would require capital and that they would be seeking this from the Government.
Subsequently work has been ongoing both on the quantification of the societies capital requirements and the terms on which it would be provided through special investment shares issued by the institutions to the State. Progress in relation to the proposed merger of the two institutions is a matter in the first instance for the respective Boards of the societies in respect of which it would not be appropriate for me to make any comment.
