Dáil Éireann Debate, Tuesday - 21 February 2023
217. Deputy John McGuinness asked the Minister for Finance if the full amount of Exchequer funding allocated to bail out the banks arising from the financial crash will be recouped by the State; if he will confirm the amount that was allocated to each financial institution; the amount that each financial institution has paid back to date; and if he will make a statement on the matter. [8183/23]
Amharc ar fhreagraThe total recapitalisation of the domestic banks amounted to €64.1bn, of which €34.7bn was invested in Anglo Irish Bank and INBS (IBRC) and €29.4bn in AIB, BOI and PTSB.
To date, €21.2bn of the investment in the three remaining banks has been recovered in cash by way of disposals, investment income and liability guarantee fees (breakdown in tabular form below). As part of this activity, the State has fully disposed of its investment in BOI generating a €2.1bn cash surplus on our support for that bank. The remaining investments in AIB and PTSB are currently valued at c. €6.7bn leaving a shortfall of c. €1.5bn.
The State invested €34.7bn in IBRC and has received c. €1.7bn (including interest) from claims submitted under the Special Liquidation. Further returns (yet to be finally quantified) will be received from the Special Liquidation in the period to 31 December 2024. The above also excludes substantial gains the Central Bank of Ireland has made from government bonds associated with the IBRC promissory note restructuring in 2013.
Summary investment position €bn
|
- |
||||
|
- |
AIB |
BOI |
PTSB |
Total |
|
Total invested by the State |
20.8 |
4.7 |
4.0 |
29.4 |
|
Cash received to date |
||||
|
- Disposal/redemptions |
8.2 |
4.4 |
1.9 |
14.5 |
|
- Coupons/dividends/fees |
3.6 |
2.3 |
0.8 |
6.7 |
|
11.8 |
6.8 |
2.7 |
21.2 |
|
|
Net cash position - In/(out) |
(9.0) |
2.1 |
(1.3) |
(8.2) |
|
Valuation of remaining investments –14 Feb 2023 |
5.9 |
- |
0.8 |
6.7 |
|
Net position – Feb 2023 |
(3.1) |
2.1 |
(0.5) |
(1.5) |
The long-standing policy of the Government has been to return the three remaining banks to private ownership, while achieving value for the taxpayer. It continues to be this Government’s belief that banking in the main is an activity that should be provided by the private sector and that taxpayer funds that were used to rescue the banks should be recovered and used for more productive purposes.
Given the improvement in bank valuations, the gap versus what we invested has certainly narrowed dramatically in the last year but I do not want to get into the business of making predictions about how much the State might eventually recover. Our objective is to get as much of the money back as we can consistent with reducing our stakes gradually over time. Holding bank shares is risky and my officials will continue to monitor investment markets and advise me on appropriate exit options.
