ICI rescue funding contributions
Desmond asked how much the Exchequer, Central Bank and Allied Irish Banks had contributed. The Minister said £70 million came from AIB and £30 million from Central Bank funds, and undertook to provide information on whether the money had been drawn down.
Is the Minister prepared to disclose the net Exchequer contribution, the net contribution by the Central Bank and the net contribution by Allied Irish Banks to the rescue package to date?.
Comment on this
I might outline to the House the ICI funding arrangements that were brought into force. The Central Bank announced on 4 October 1985 that the financial arrangements they had made with AIB and the other licensed banks in respect of the ICI involved an advance for a period of 15 years of an amount of £100 million to the Minister for Finance for on-lending to the Insurance Corporation of Ireland fund and hence, under the supervision of the court, to the administrator. Seventy million pounds have been advanced by AIB and the remaining £30 million are from the Central Bank's own funds. The full cost of the funding is £9 million per annum to be borne as follows: AIB, £5.5 million; other licensed banks, £1.5 million and the administrator, £2 million, bringing the total to £9 million.