Dáil Éireann Debate, Thursday - 15 March 2012
13 Deputy Michael McGrath asked the Minister for Finance if he will confirm whether a restructuring of the IBRC promissory note would require approval from EU heads of Government; and if he will make a statement on the matter. [14825/12]
View answerAs the Deputy will be aware, the Promissory Note arrangement is essentially an arrangement between the Government and IBRC. The Government has provided Promissory Notes to IBRC and undertaken to repay the principal and interest payments in accordance with a repayment schedule. However, the Promissory is accepted as collateral for the Exceptional/emergency Liquidity Assistance (ELA) by the Central bank of Ireland and as such there is an implicit link between the current repayment schedule on the Promissory Note and ELA provided by the Central Bank. Any discussions in relation to ELA would of necessity have to include the ECB. The EU Commission and the EU heads of Government are one step further removed from the initial arrangement between the Government and IBRC. However given our approach to addressing the heavy debt burden, involving the Troika in developing a technical solution or range of solutions and given that possible alternative sources of long-term funding may involve the EU Commission, it is not unreasonable to assume that any solution may require the approval or acquiescence of Member States whether formally at heads of Government level, or less formally through the structures of the European Commission. However, it is important to await the outcome of the technical review to properly assess what is required to get an appropriate solution in place. In the meantime the Government will avail of every opportunity to garner support for the work in hand and for a positive outcome for the country.
