Dáil Éireann Debate, Wednesday - 16 May 2012
84 Deputy Éamon Ó Cuív asked the Minister for Finance the total net investment by the State in banks and financial institutions since 2008 and the amount this has added to the national debt; and if he will make a statement on the matter. [24515/12]
Amharc ar fhreagraThe table below shows the net investment after accounting for all fees paid in respect of the recaps, the Cash dividend income on Preference shares, and Cash received from sale of warrants:
|
€bn |
AIB/EBS |
BoI* |
IL&P |
IBRC (Anglo/INBS) |
Total |
|
Government preference Shares (2009) — NPRF |
3.47 |
3.47 |
— |
— |
6.94 |
|
Government preference Shares Return (Coupon/Warrants) |
— |
-0.95 |
— |
— |
-0.95 |
|
Capital contributions (with Promissory Notes as consideration) /Special Investment Shares (2010) — Exchequer ** |
0.88 |
— |
— |
30.70 |
31.58 |
|
Ordinary Share Capital (2009) — Exchequer |
— |
— |
— |
4.00 |
4.00 |
|
Ordinary Share Capital (2010) — NPRF |
3.70 |
— |
— |
— |
3.70 |
|
Total pre-PCAR 2011 (A) |
8.04 |
2.52 |
0.00 |
34.70 |
45.27 |
|
PCAR 2011: |
|||||
|
Capital from Exchequer*** |
3.88 |
— |
2.65 |
— |
6.54 |
|
NPRF Capital |
8.77 |
1.20 |
— |
— |
9.97 |
|
Total PCAR (B) |
12.65 |
1.20 |
2.65 |
0.00 |
16.51 |
|
Total Cost of Recap for State (A) + (B) |
20.70 |
3.72 |
2.65 |
34.70 |
61.77 |
*€1.7bn of BoI’s government preference shares were converted to equity in May/June 2010 (€1.8bn still left in existence). The government also received €479m from the warrants, €403m in dividend income and €64m in fees relating to BoI’s preference shares.
**The IBRC amount is made up of a total capital contribution for Anglo / INBS of €30.6bn and a special investment share of €0.1bn (INBS). The Anglo / INBS capital contribution impacted in full on the GGB in 2010. The consideration for the Anglo / INBS capital contribution was €30.6bn of promissory notes. These Promissory Notes are an amount due from the State to IBRC. Each year, on 31 March, €3.06bn is paid by the Exchequer to Anglo / INBS as part of the scheduled repayments of the promissory notes. The first such repayment was made on 31 March 2010.
***All costs are shown net of fees, the Exchequer cost of the 2011 BoI recap is shown net of share sale to private investors (Completed in October, 2011).
Not factored into the table above are fees received by the State to end March 2012, since the introduction of the Credit Institutions Financial Support Scheme (CIFS) in September 2008 and the Eligible Liabilities Guarantee Scheme (ELG) which supersedes CIFS, which amount in total to €3.11bn.
National Debt is the net debt incurred by the Exchequer. Ireland's National Debt stood at €129.6 billion at end-April 2012. Of that amount, some €17.8 billion is the result of State support for the banking sector – see table below:
|
State Support for Banking Sector |
2009€bn |
2010€bn |
2011€bn |
2012 (end-April)€bn |
|
Total |
4.0 |
0.7 |
9.6 |
3.5 |
|
—Recapitalisation of Anglo |
4.0 |
|||
|
—INBS/EBS Special Investment Shares |
0.7 |
|||
|
—Promissory Notes |
3.1 |
3.5† |
||
|
—July 2011 Banking Recapitalisation |
6.5* |
†On 30th March 2012, the NTMA sold €3.461 billion nominal of the 5.4% Treasury Bond 2025 to IBRC. The bonds settled on 2nd April 2012. The total consideration for this transaction was €3.06 billion and was used to settle the Promissory Note liability due to IBRC on 31st March 2012.
*Net of Exchequer receipts from the sale of the part of the National Pensions Reserve Fund (NPRF) shareholding in Bank of Ireland and of transaction fees from the ILP recapitalisation.
While the €30.85 billion in Promissory Notes issued in 2010 were added in full to the stock of General Government Debt in 2010, they only add incrementally to the National Debt as the annual payments are made, as shown in the table.
In addition, a further €20.7 billion has been provided to the banking system from the NPRF. Funding provided from the NPRF does not directly affect the National Debt.
