Government of Ireland

Yale University

Publica onIrish Bank Resolu on Corpora on(IBRC)From Department of Finance (/en/organisa on/department-of-finance/) Published on 23 January 2018Last updated on 14 January 2022 On 15 January 2009, the Irish government decided, having consulted with the Board ofAnglo Irish Bank, to take steps to enable the bank to be taken into public ownership.The decision was taken a er consulta on with the Central Bank and the FinancialRegulator. The Anglo Irish Bank Corpora on Act 2009(h ps://www.irishstatutebook.ie/eli/2009/act/1/enacted/en/html) was passed andtransferred the ownership of Anglo Irish Bank to the Minister for Finance.The State invested €4 billion in ordinary shares in Anglo Irish Bank in June 2009 and afurther capital injec on of €100 million in Irish Na onwide Building Society (INBS) wasmade in 2010, in the form of special investment shares.Addi onal capital injec ons into Anglo Irish Bank and INBS were by way of promissorynotes. By 31 December 2010, the total promissory notes held by Anglo Irish Bank andINBS was €30.6 billion. In total, therefore, the State invested €34.7 billion in Anglo andINBS.In early 2011, the majority of the deposits held in Anglo Irish Bank and INBS weretransferred to Allied Irish Banks and Permanent TSB respec vely and in July 2011Anglo Irish Bank and INBS were merged to form Irish Bank Resolu on Corporate(IBRC).In February 2013 following discussions between the Irish Authori es and the ECB the28/11/2024, 21:57 gov.ie - Irish Bank Resolution Corporation (IBRC)https://www.gov.ie/en/publication/97fb9b-irish-bank-resolution-corporation-ibrc/ 1/5In February 2013, following discussions between the Irish Authori es and the ECB, theIBRC promissory notes were exchanged for a por olio of long-term government bondswhich have a weighted average maturity of 34 to 35 years in comparison to theweighted average maturity of the promissory notes of 7 to 8 years.The replacement of the promissory notes with long dated Irish government bonds hassignificantly smoothed Ireland’s debt profile and reduced near-term borrowingrequirements.In February 2013, the Irish Bank Resolu on Corpora on Act 2013 was enacted and aspecial liquida on order was signed by the Minister for Finance placing IBRC intospecial liquida on. The joint special liquidators, Kieran Wallace and EamonnRichardson, now control the opera ons of IBRC pursuant to the IBRC Act 2013.The Special Liquida onThe success of the liquida on to date has far exceeded expecta ons at the outset ofthe Promissory Note transac on in 2013 with IBRC staff along with the SpecialLiquidators and their advisors having worked  relessly to plan and execute theliquida on of IBRC.The Department of Finance has published regular Progress Update reports whichprovide a comprehensive overview of the breadth of work performed in conduc ngone of the most complex and challenging liquida ons in Irish corporate history.As a result of the liquida on of IBRC in February 2013 a number of payments weremade from the Exchequer under various guarantees including the Eligible Liabili esGuarantee (‘ELG’) Scheme. These payments under the ELG scheme were owed to theExchequer and stood as an unsecured credit in the liquida on of IBRC. Any remainingassets in IBRC, a er the unwinding of all secured liabili es, were available for thebenefit of the pool of unsecured creditors (including the Minister, due to paymentsunder guarantees), unguaranteed bondholders, suppliers, and sundry liabili es. In total,Department of Finance related claims of c. €1.12 billion were submi ed to the JointSpecial Liquidators of IBRC.28/11/2024, 21:57 gov.ie - Irish Bank Resolution Corporation (IBRC)https://www.gov.ie/en/publication/97fb9b-irish-bank-resolution-corporation-ibrc/ 2/5Between 2016 – 2019, all admi ed unsecured creditors of the liquida on, includingthe State, received 100% of the principal amount that they were owed at the date ofthe liquida on of IBRC in February 2013. The Special Liquidators con nue to workthrough outstanding claims.A further €108 million was received by the Exchequer in December 2019 which relatesto the interest owed on the claims made by the Department of Finance.On the commencement of the Anglo Irish Bank Corpora on Act 2009, all shares in theBank were transferred to the Minister for Finance and remained in the ownership ofthe Minister at the date of the liquida on of IBRC in February 2013. Included in thiswas £300 million of preference shares for which the State received €348 million inDecember 2019.It is the current expecta on of the Special Liquidators that they will have finalised theSpecial Liquida on of IBRC by end-2024, and as they work through the remaining tasksin the liquida on, including but not limited to the realisa on of the remaining assetsand the conclusion of the remaining legal cases that IBRC remain party to, there will befurther funds returned to the State in 2023 and 2024.As a result of the [external-link h ps://ec.europa.eu/eurostat/sta s cs-explained/index.php? tle=European_system_of_na onal_and_regionalaccounts -_ESA_2010 | European System of Na onal and Regional Accounts ] (ESA 2010), IBRC isclassified in government. Any payment from the Special Liquidators of IBRC to theState would be considered an intra-government payment with no impact on the deficit.It would however improve the exchequer borrowing requirement as the cash receivedwould increase the cash balances in the Central Fund and thereby reduce the requiredlevel of borrowing.Among other assets, loans with a par value of €3.5 billion remain which the specialliquidators con nue to manage. These are loan assets which were not included in theoriginal sales processes as they are connected to cases involved in ongoing li ga on.While the bulk of the liquida on proceeds have been realised, there remains asignificant amount of work to be completed by the Special Liquidators including the on-going management of approximately 29 legal cases to which IBRC (in specialliquida on) remains party.28/11/2024, 21:57 gov.ie - Irish Bank Resolution Corporation (IBRC)https://www.gov.ie/en/publication/97fb9b-irish-bank-resolution-corporation-ibrc/ 3/5The comple on of the creditor adjudica on process is another key task for the SpecialLiquidators. The Special Liquidators will con nue to work with unsecured creditors whohave submi ed a claim but have yet to have their claim admi ed.COVID-19 will have a material impact on the  meline for comple on of the liquida on.This is primarily as a result in of ongoing legal cases being significantly delayed, assetsales have also been deferred while it is s ll too early to have a clear view on theimpact on the value of the remaining book.IBRC Progress Report Updates (/en/collec on/9d6c20-ibrc-progress-report-updates/)Irish Bank Resolu on Corpora on Act 2013(h ps://www.irishstatutebook.ie/eli/2013/act/2/enacted/en/html)Part ofPoliciesFinancial Services (/en/policy/e2ba7b-financial-services/)Help us improve our site Leave feedbackCirculars (/en/circulars/)Consulta ons (/en/consulta ons/)Directory (/en/directory/)Policies (/en/policies/)Publica ons (/en/publica ons/)28/11/2024, 21:57 gov.ie - Irish Bank Resolution Corporation (IBRC)https://www.gov.ie/en/publication/97fb9b-irish-bank-resolution-corporation-ibrc/ 4/5Manage cookie preferencesManage preferencesAbout gov.ie (/en/help/about-govie/)Accessibility (/en/help/accessibility/)Latest financial accounts (/en/help/0b8e3-latest-financial-accounts/)Privacy policy (/en/help/privacy-policy/)Sell to Government (/en/help/c223b-sell-to-government/)Who does what (/en/help/e170a-who-does-what/)28/11/2024, 21:57 gov.ie - Irish Bank Resolution Corporation (IBRC)https://www.gov.ie/en/publication/97fb9b-irish-bank-resolution-corporation-ibrc/ 5/5

Irish Bank Resolution Corporation (IBRC)

https://elischolar.library.yale.edu/context/ypfs-documents2/article/6084/viewcontent/Government_of_Ireland___2022___Irish_Bank_Resolution_Corporation__IBRC_.pdf

Irish Bank Resolution Corporation (IBRC)

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