IL&P details Anglo Irish deposits

Irish Life & Permanent has provided details of the transactions with Anglo Irish Bank which resulted in total transfers of €8.2 billion from Irish Life & Permanent. This is its statement:

"In the interests of clarity, Irish Life & Permanent plc (IL&P) is making disclosure of the nature and extent of the Group's dealings with Anglo Irish Bank (Anglo) across each institution's reporting dates. We emphasise again that each of these transactions was properly accounted for in the Group's [Irish Life & Permanent plc] books and records and were fully disclosed in our regular reports and returns to the Financial Regulator.

Deposits lodged with Anglo Irish Bank:

On 31st March 2008, at the request of Anglo, IL&P, through its subsidiary Irish Life Assurance (ILA), deposited €750 million overnight on receipt of €1 billion cash into Permanent TSB which was offered as collateral in respect of the deposit.

During September, at the request of Anglo, IL&P, through its subsidiary ILA, deposited a total of €3.45 billion with Anglo in 5 separate deposits [on dates from 26th September to the 29th September] accepting €3.45 billion of cash into Permanent TSB which was offered as collateral in respect of these deposits.
These transactions matured on the 2nd and 3rd October.

On the 29th September, IL&P was contacted by Anglo on three separate occasions requesting further advances which were declined as further collateral was unavailable from Anglo to support such deposits.

On 30th September, following the introduction of the Government Guarantee Scheme, and again at the request of Anglo, IL&P, through its subsidiary ILA, agreed to place a total of €4 billion on deposit overnight with Anglo on receipt of €4 billion into Permanent TSB which was offered as collateral in respect of these deposits. This transaction occurred in four tranches.

These transactions matured on the 1st October.

IL&P plc:

As part of IL&Ps ongoing wholesale funding programme, the bank enters into normal secured interbank transactions of short term duration with a number of participants including the ECB.

In accordance with market norms, these involve the pledging of eligible mortgage assets in exchange for cash with the transactions being accounted for as interbank deposits.

At 30th June 2008 IL&P had outstanding €7.73 billion of such transactions. Anglo's participation in these transactions amounted to €3.33 billion.

These transactions were correctly accounted for as interbank deposits in the interim accounts of IL&P.
There were no material collateralised transactions with Anglo at 31st December 2008."