Dáil Éireann Debate, Thursday - 30 September 2010
139 Deputy Michael McGrath asked the Minister for Finance the position regarding the amount of fees received to date, and expected to be received in total, by the Exchequer arising from the guarantee under the credit institutions financial support scheme 2008. [34289/10]
Amharc ar fhreagraTo date the banks have paid fees totalling €730m under the Credit Institutions (Financial Support) Scheme 2008. We have also received €296m under the ELG Scheme. This money, and that due under the next payment, will be transferred to the Exchequer in October. I do not expect to receive significant sums in relation to CIFS for Q3 as a credit still applies for overpayments of the CIFS fee in Q1 when ELG came on stream.
140 Deputy Michael McGrath asked the Minister for Finance the position regarding the €3.5 billion invested in both Allied Irish Bank and Bank of Ireland by way of preference share capital; the income received by the Exchequer arising from the coupons associated with these investments; the amount of ordinary share capital held in both institutions arising from the coupon payments; and if he will make a statement on the matter. [34300/10]
Amharc ar fhreagra€3.5bn was invested by way of preference shares in AIB on 13 May 2009. On the 13 May 2010 the NPRFC received 198 million ordinary shares of AIB in lieu of a cash payment of the dividend on the preference shares. The payment was made in the form of ordinary shares as the European Commission requested that discretionary coupon payments on Tier 1 and Upper Tier 2 capital instruments in Bank of Ireland and AIB not be paid while it considered each bank's restructuring plan. This number of shares was equal to the aggregate cash amount of the annual dividend of €280 million, divided by the average price per share in the 30 trading days prior to the payment date.
€3.5bn was invested by way of preference stock in BOI on 31 March 2009. On 22 February 2010 the NPRFC received 184 million units of ordinary stock in lieu of a cash payment of the dividend on the preference stock, this being the number of units equal to the aggregate cash amount of the 2010 dividend of €250 million divided by 100% of the average price per unit of ordinary stock in the 30 trading days prior to the payment date.
As part of BOI's capital raise completed in the first half of 2010, the NPRFC converted 1,663 million units of preference stock into 1,715 million units of ordinary stock through participation in a rights issue and a direct placement of ordinary stock. In addition, as part of the capital raise, the NPRFC received €543m in transaction fees and payment for cancellation of the warrants and the interest rate on the remaining preference shares was increased from 8% to 10.25%.
As a result of the directed investments referred to above, the NPRFC holds 1,900 million units of ordinary stock in BoI and 1,837 million units of 2009 preference stock.
