Brendan Griffin
Ceist:64. Deputy Brendan Griffin asked the Minister for Finance his plans for 2015 to recover public moneys diverted to the banking system in recent years; and if he will make a statement on the matter. [1985/15]
Amharc ar fhreagraThursday, 15 January 2015
Ceisteanna (64)
Freagraí scríofa
As the Deputy will be aware the Irish banking system is now in a much stronger position than it has been in recent years. Profits are recovering, balance sheets have been restructured and we have started the process of returning cash to the taxpayer following the huge investments that were made over the 2009-11 period.
The preliminary independent valuation of our shareholdings by the NTMA shows that as at 31 December 2014 our equity and preference shares in AIB were valued at €11.7 billion and our 14 per cent equity interest in Bank of Ireland was valued at €1.4 billion. The State also holds €1.6 billion of convertible contingent notes in AIB and another €400 million of convertible contingent notes in PTSB (we have not independently valued our 99.2% equity interest in PTSB), which brings the total current value of the state's banking investments to more than €15 billion. This compares with €13.1 billion at end 2013.
Much of the banking-related work in the Department of Finance this year will focus on AIB. Given the scale of the State s investment some €20.8 billion and the range of options available to recoup value from the bank, officials within my department are working with AIB on reconfiguring its capital structure. Goldman Sachs International has been appointed to provide financial advice in this regard.
The focus will be on ensuring that the best decisions are made regarding potential capital restructuring options and sequencing in order to maximise the return of cash to the State from our AIB investments over time. While this is just the start of the process, it is an essential first step on the road to recovering value for the taxpayer. All options remain on the table and it is too early to specify what steps will be taken next or to put a timeline on decisions.