Dáil Éireann Debate, Thursday - 14 November 2013
51. Deputy Michael McGrath asked the Minister for Finance if Permanent TSB have been indemnified against any future losses at Newbridge Credit Union in excess of the losses covered by the injection of €53 million in capital; and if he will make a statement on the matter. [48774/13]
Amharc ar fhreagraI have agreed to the Governor of the Central Bank’s request for the payment of a financial incentive to transfer the assets and liabilities of Newbridge Credit Union to Permanent TSB (excluding the premises) of up to €53.9m. This involves:
- €23m in cash up front (to fill the hole in the balance sheet);
- restructuring and integration costs €4.25m;
- €2m for other transferring liabilities; and
- a risk share on the transferring loans whereby the State will absorb 50% of the losses where loans perform below their transfer value and 50% of the gains where they perform above the transfer value. If these loans were written off entirely with no recovery this would result in an additional €24.7m total cost.
Permanent TSB has not been indemnified against any future losses at Newbridge Credit Union in excess of the losses covered by the financial incentive of €53.9m.
