Dáil Éireann Debate, Tuesday - 18 September 2012
283. Deputy Pearse Doherty asked the Minister for Finance the most recent projected ultimate outturn at the Irish Bank Resolution Corporation in which he is the sole shareholder; and if the management of IBRC still believes there will be a return of funds to the State. [38496/12]
Amharc ar fhreagra284. Deputy Pearse Doherty asked the Minister for Finance if the most recent projected ultimate outturn at the Irish Bank Resolution Corporation in which he is the sole shareholder takes account of the circa €13 billion in total lifetime interest that is currently payable on the €31 billion of promissory notes originally provided to IBRC. [38497/12]
Amharc ar fhreagraI propose to take Questions Nos. 283 and 284 together.
The bank has informed me that the projected final net asset position for IBRC is considered both commercially sensitive and subject to material uncertainty given the current uncertainties in markets, the deterioration in asset values and the complexities, timescales and risks involved in deleveraging. Whilst significant progress has been made the final position will be driven by a number of variable factors against the assumptions in IBRC's wind down plan. These factors include actual recovery rates achieved for assets, the performance of the domestic and global economies, and the prevailing interest rates in Europe over the duration of the plan.
The bank's policy is that, due to the commercially sensitive nature of such information as noted above combined with the many external variables involved, it does not issue formal projections. However, the Bank's CEO has given an indication previously that the likely outcome for Anglo Irish Bank would be in the €25 - €28 billion region. The bank have informed me that since this time there have been a number of changes in market circumstance, the accelerated pace of asset disposal, and the acquisition of Irish Nationwide Building Society. While not issuing a revised projection as noted above, the bank remains of the view that there will be a small return to the State at full resolution, given the assumptions currently being used.
Further in relation to inclusion of interest in the projected ultimate outturn I have been advised that in calculating the projected final net asset position IBRC take into account interest from all assets including customers, securities and Promissory Notes.
