Annual Report & Accounts 2009 - Anglo Irish Bank

Notes to the financial statements continued
55. Related party transactions continued
152
Loans to key management personnel
Loan balance movements during the period and the aggregate amounts outstanding at period end to persons who, at any time
during the period, were key management personnel were:
At beginning of period
Loan advances during the period (1)
Loan repayments during the period (1)
Other movements (2)
At end of period (3)
Provisions for impairment (4)
At end of period after provisions for impairment
Number of persons
* Excludes Executive Directors
(1)
(2)
(3)
(i)
(ii)
Other key Other key
Directors management * Directors management *
€m €m €m €m
179 7 46 6
41 - 255 2
(28) - (115) -
(37) 4 (7) (1)
155 11 179 7
(109) - - -
46 11 179 7
10 7 13 2
Loan advances for the year ended 30 September 2008 include €122m (including €9m in respect of another former
Director on a joint loan account) redrawn in October 2007 relating to amounts refinanced by the former Chairman shortly
before 30 September 2007. Such refinancing did not occur in September 2008 and, accordingly, there was no
corresponding loan advance for the period ended 31 December 2009.
Loans to the former Chairman of €88.7m (30 September 2008: €83.3m).
15 months ended Year ended
31 December 2009 30 September 2008
Loans are advanced to Directors (a) at commercial interest rates; (b) on a secured basis; and (c) with full personal recourse
except as referred to in 3(ii), 3(iii)(a) and 3(iv). Directors' loan balances above include the amount of personal recourse to them
in relation to their share of loans advanced by the Bank to investment partnership and co-ownership structures in which they
are investors.
Included in repayments for the year ended 30 September 2008 is €22m relating to amounts which were repaid shortly
before 30 September 2008 by the former Chairman, and another former Director. This repayment was made from
deposits held with the Bank. This amount was redrawn shortly after 30 September 2008 and placed back on deposit with
the Bank and, accordingly, €22m is included in loan advances for the period ended 31 December 2009. Similarly, loan
advances for the year ended 30 September 2008 include €21m redrawn in October 2007 in respect of loans repaid shortly
before 30 September 2007 from deposits held with the Bank by these former Directors. This amount was placed back on
deposit with the Bank.
Other movements include €35m in relation to Directors who retired in the year to 30 September 2008 and the impact of
foreign exchange rate changes on non-euro denominated loans. Other movements in 'Other key management' reflect the
change in the composition of the Group's senior management during the period.
Loans and advances at 31 December 2009 include €1m to individuals who are currently key management personnel.
There were no loans (30 September 2008: €0.4m) to Directors remaining in office at 31 December 2009. The Directors'
loan balances at 31 December 2009 include:
A loan to a former Director of €9m (30 September 2008: €8m) was secured on ordinary shares in the Bank. The loan
was on non-recourse terms to the former Director at 30 September 2008. The facility in respect of this loan was
renewed during the period on a full personal recourse basis. Under the Anglo Irish Bank Corporation Act, 2009, all of
the Bank's ordinary share capital was transferred to the Minister for Finance.