125 Deputy Brian O’Shea asked the Minister for Finance the extent to which the subordinated bondholders of Irish banks in receipt of State support have been made shoulder some of the burden for their unwise investments; if he will provide a breakdown by institution of the total outstanding subordinated debts and their market values; the total subordinated liabilities paid back in full or in part since the introduction of the blanket bank guarantee in September 2008; the timescale and the mechanism for the imposition of further burden sharing on these subordinated bondholders; the amount of capital he expects to generate in this manner; and if he will make a statement on the matter. [1376/11]

As detailed in the following tables, holders of subordinated debt in the covered institutions have experienced significant burden sharing which reduced the amount of State support that has been required by them. As set out in the tables, several of the institutions have carried out Liability Management Exercises (LMEs) in which their subordinated debt has been subject to buy-backs at very significant discounts. The Deputy will also be aware as part of the Joint Programme agreed with the EU and IMF at the end of November last, the Government is committed to achieving further burden sharing with holders of subordinated debt over the period of the programme. In line with the terms of the agreement and my Statement on Banking in September 2010 this will be achieved through deeply discounted LMEs or, if necessary, and subject to the provisions of the Credit Institutions Stabilisation Act enacted late last year by legislative means. The information requested by the Deputy is set out in the tables following:

*Market Value and Capital generated adjusted for €13m of costs.

Notes:

Please note exchanges rates as at 31 December 2010 have been used where possible in order to provide a corresponding EUR equivalent.

*Included in the total figure of €0.768bn of subordinated debt is the sum of €0.348bn which relates to 300,000 Non-Cumulative Preference Shares.

The inclusion of these preference shares in the bank's subordinated debt is required by accounting rules notwithstanding that they are now owned by the Minister as they remain technically a debt due to the shareholder on a winding up, albeit one ranking after all other debtors.

*Gain includes unwind of hedge adjustments.