The status of capitalisation of the New Banks

Ministry of Finance, Press Release Nr. 31/2009

The Ministry of Finance together with representatives of the New Banks and its advisers will be meeting with the Resolution Committees and their advisers during this week to commence the formal negotiations in order to conclude the capitalisation of the New Banks and the agreement of compensation for the Old Banks.

Over the last three months there has been considerable work undertaken by the New Banks to prepare up-to-date financial information and business plans which will form an important part of the negotiation process. The business plans have been prepared taking into account the valuation work undertaken by Deloitte which was completed in April. In addition over this period there have been a significant number of informal meetings with the Resolution Committess, their advisers and representatives of the creditors of the Old Banks in order to keep them informed of the process and to explore the possible forms of compensation which might be applicable.

It is an important objective of the Ministry of Finance to conduct negotatiations with the Resolution Committees in a fair and open manner against an appropriate level of information. It is now hoped that the discussions will be able to be concluded in a rapid timeframe in order to finalise the capitalisation of the New Banks.