Dáil Éireann Debate, Thursday - 11 December 2014
70. Deputy Michael McGrath asked the Minister for Finance if he will provide for each financial institution the amount of losses imposed on subordinated/junior bondholders since the banking crisis of 2008 by the previous Government and, separately, by the present Government; and if he will make a statement on the matter. [47621/14]
Amharc ar fhreagraIn the period since 2008, significant burden-sharing has been achieved through Liability Management Exercise (LME) transactions completed by the Covered Banks. The purpose of the LMEs was to create additional core tier 1 capital and to strength en the quality of the capital base of the Banks.
Prior to the Central Bank's PCAR, burden sharing with subordinated bondholders raised c. €10 billion of capital gains across the Covered Institutions. In the period since this Government came into power, burden sharing with subordinated bondholders has realised an additional c. €5.2 billion greatly reducing the cost of recapitalising the banks and bringing the total to more than €15 billion.
The following table sets out the amount of capital raised by the Covered Banks via LME's since the banking crisis began.
|
- |
Burden Sharing pre March 2011 €'m |
Burden Sharing since March 2011€'m |
Total€'m |
|
AIB |
3,121 |
2,053 |
5,174 |
|
BOI |
2,469 |
2,163 |
4,632 |
|
EBS |
227 |
- |
227 |
|
ILP |
- |
982 |
982 |
|
IBRC |
4,092 |
- |
4,092 |
|
Total |
9,909 |
5,198 |
15,107 |
