Dáil Éireann Debate, Wednesday - 22 February 2012
33 Deputy Gerry Adams asked the Minister for Finance the interest rate paid by Irish Bank Resolution Corporation to the Central Bank of Ireland for the emergency liquidity assistance; and if he will make a statement on the matter. [9955/12]
View answerOne of the functions of the Central Bank, similar to other central banks, is to grant Exceptional Liquidity Assistance or ELA to a credit institution when this is deemed necessary for financial stability purposes. These amounts are published monthly. The Central Bank cannot disclose the financial institutions that avail of such support, nor does it disclose the terms on which this support is given. ELA is one of the ways that the Central Bank has responded to the financial crisis. This is distinct and separate from regular funding operations carried out for monetary policy implementation purposes through the ECB. A loan provided to a credit institution under ELA is granted against suitable collateral, where suitability is in line with unpublished criteria defined by the Central Bank. Further details on ELA are available in the Central Bank Annual Report for 2010 which is available on their website. I can refer the Deputy in particular to note 1(v) and Note 20(iii) on pages 93 and 104 respectively.
