Minister for Finance, Brian Lenihan, in the Dáil on 12 October outlined data on the cost of assistance to domestic credit institutions.
He stated that the injections into Anglo Irish Bank and the Irish Nationwide Building Society are classified as capital transfers and as such are not a directly returnable investment.
In relation to the EBS, the Society is in discussion with a number of parties about its future and any adjustment in its capital need that arises will be accommodated in the outcome of those discussions in due course.
With regard to Bank of Ireland, a substantial portion of the initial €3.5bn preference share investment has been converted into ordinary equity and there are €1,837m preference shares remaining. The terms on which the preference shares were issued provide for full repayment to the Government.
In the case of AIB, the Government retains its €3.5bn holding in preference shares. Minister Lenihan restated that the National Pension Reserve Fund Commission (NPRFC) will underwrite a placing and open offer of €5.4bn in relation to AIB's capital position and if necessary, the NPRFC's underwriting commitment will be satisfied by the conversion of up to €1.7bn of its existing preference shares in the bank into ordinary shares along with a new cash investment for the balance of €3.7bn in ordinary shares. This transaction structure assumes the sale of AIB's stake in M&T Bank and disposal of other assets in due course. In the event that the bank's residual capital requirement is not met through asset sales by March 31 2011, any shortfall will be met by the conversion of a proportion of the remaining €1.8bn of preference shares, stated the Minister.