Dáil Éireann Debate, Wednesday - 28 April 2010
85 Deputy Seán Sherlock asked the Minister for Finance the way it is envisaged that Ireland will fund up to €480 million to lend to Greece under the emergency EU-led lending facility; and if he will make a statement on the matter. [17220/10]
View answerThe Government recently approved the participation of Ireland in euro area co-ordinated financial support to Greece via bilateral loans centrally pooled by the European Commission as part of an agreed Euro Area package, to be co-financed by the IMF; and agreed to the preparation of the necessary enabling legislation. Work is progressing in this regard and I anticipate that matters will be before the house shortly.
The overall size of distribution of assistance has yet to be finalised but based on a Euro area year one contribution of €30 billion, Ireland's share of this contribution, which is based on its ECB paid capital, would be 1.64% or approximately €500 million. The cost of this facility would be met by the Greeks, under the terms of the assistance package, and the amount must be considered in the context of the overall funding needs of the State, which this year are estimated to be of the order of €20 billion.
The Commission is making solid and rapid progress with the ECB, the IMF and the Greek authorities to finalise the Greek adjustment programme. The Commission expects this work to be finalised in the coming days. On this basis, the Euro area members will take the decision on the activation of the financial support as decided by the Heads of State and Government of the Euro area on 25 March and specified by the Eurogroup on 11 April. All euro-area Member States are finalising the procedures that will allow them to provide financial support to Greece as necessary.
