Main points from speech by Minister for Finance Brian Lenihan to the Dáil today on the funding requirement of Irish banks:
1 The transfer of loans from banks to Nama remains on target for completion by the end of the year
2 Nama's work has allowed the Government estimate with greater accuracy the overall discount to be applied
3 The fall in value of transferred loans means banks will now have to recognise their losses upfront
4 Finding a long-term solution for Anglo Irish Bank is biggest challenge in resolving the banking crisis
5 Winding-up Anglo Irish would lead to a fire-sale of assets and a loss of upwards of €30 billion. In addition, the State would have to provide in the order of €70 billion up-front to meet deposits, bondholders and the liabilities due to the Eurosystem
6 Mr Lenihan said he was providing €8.3 billion to support the capital position of the bank to take into account the bank's losses to date
7 The tranche of Anglo loans will not occur until early April as the valuations have not been finalised. The latest available unaudited estimate of the discount is in the order of 50 per cent
8 Bank of Ireland expects to be able to raise private capital. Mr Lenihan said he has ben advised that the bank is well advanced in its actions to address its capital needs
9 Allied Irish Bank is in a position to raise capital through the sale of overseas assets. As the first step in meeting its capital needs the bank will immediately commence the process of sale of assets in the US, Poland and in Great Britain
10 The regulator has determined that AIB must raise additional equity capital of at least €7.4 billion by the end of the year to meet the new capital base standards
11AIB and Bank of Ireland will make available for targeted lending not less than €3 billion each for new or increased credit facilities to SMEs in both 2010 and 201
12 They will also make available €20 million each for Seed Capital to be provided to Enterprise Ireland supported ventures, building on the very successful programme launched in 2009.
13 Approximately €9 billion of INBS loans and €1 billion of EBS building society loans will be transferred to Nama.