Statement by Finance Department on transfer of deposits
THE Finance Department has issued a statement in the wake of a court decision today which will see the transfer of the Anglo Irish deposit book to AIB.
The High Court decision will also see the deposits of the Irish Nationwide Building Society being transferred to Irish Life and Permanent.
Today’s ruling by the court followed an application by the Minister for Finance. It also comes in the wake of an earlier High Court ruling on Tuesday the 8th of February ordering the auction of the deposits.
See the MerrionStreet.ie report on the 8th February ruling.
The following statement has been issued by the Finance Department following today’s ruling.
No action is required by the depositors on foot of today’s ruling.
Transfer of Anglo Irish Bank’s and Irish Nationwide Building Society’s deposit books
Following an application by the Minister for Finance earlier today, the High Court has issued two Transfer Orders under Part 5 of the Credit Institutions (Stabilisation) Act 2010 for the immediate transfer of the deposit books and corresponding assets of Anglo Irish Bank Corporation Limited (Anglo) and Irish Nationwide Building Society (INBS) to Allied Irish Banks, p.l.c. (AIB) and Irish Life & Permanent plc (ILP) respectively.
The Minister, having consulted with the Governor of the Central Bank of Ireland, was of the opinion that these Transfer Orders were necessary to ensure that both Anglo and INBS are in a position to continue the process for their restructuring in accordance with the provisions of the EU/IMF Programme of Financial Support for Ireland (the Programme). The Minister, welcoming the Orders stated “This is a decisive step towards resolving the position of Anglo and INBS in a way that protects depositors and strengthens the banking system.”
The Programme, which endorsed the Government’s approach, provides for a significant change to the banking system in a way that will protect depositors, seeks to minimise capital losses arising from the work-out of Anglo and INBS and strengthens the overall banking system. In line with this commitment, a plan for the restructuring and work-out of Anglo and INBS was submitted to the European Commission on 31 January 2011 in accordance with EU State aid rules.
The Transfer Orders enable the State to continue the process of restructuring Anglo and INBS as envisaged in their restructuring plan in a manner that benefits from necessary legal protections which is recognised in other EU Member States.
No action is required to be taken by depositors following the making of the transfer orders by the High Court. The position of depositors in both Anglo and INBS remains fully secure following this transfer. Customers of Anglo and INBS should be reassured that their deposits remain protected under existing Government guarantee arrangements. The transfer will have no impact on existing terms and conditions. Depositors continue to have access to their funds in the normal manner as they had under their arrangements with Anglo or INBS.
Certain employees who deal with the deposit taking activities in Anglo and INBS have transferred to the relevant acquiring bank. Their existing terms and conditions are safeguarded in accordance with applicable employment legislation.