Dáil Éireann Debate, Thursday - 26 February 2015
75. Deputy Michael McGrath asked the Minister for Finance the amount of additional capital required by Permanent TSB, arising from the recent European Central Bank stress tests; the steps the bank, he and his officials are undertaking to address the shortfall; and if he will make a statement on the matter. [8703/15]
Amharc ar fhreagraThe Comprehensive Assessment Adverse Stress Test result announced in October 2014 identified a capital shortfall of €855 million. As a consequence the bank has submitted a Capital Plan to the SSM, which outlines how the bank intends to meet the capital shortfall. Much of the shortfall has been met through performance in 2014 and deleverage of assets in 2014. The remaining shortfall will require the bank to raise capital, including equity capital, from private sources before 26 July 2015, diluting the State's shareholding. Details of the capital raise, including quantum and structure, will be finalised and publicised in due course .
I am of the view that the best way to protect the value of the State's shareholding is to ensure Permanent TSB is well prepared, that it conducts a comprehensive and competitive exercise to raise the capital with appropriate legal and financial advice, and that the State has meaningful oversight and involvement in the process. Officials from my Shareholding Management Unit and our financial advisers, JP Morgan Cazenove, are well placed to fulfil this role and are engaging with the bank on important aspects of the capital raise on a regular basis.
