Skip to main content
Normal View

Bank Guarantee Scheme Bond Repayments

Dáil Éireann Debate, Wednesday - 17 October 2012

Wednesday, 17 October 2012

Questions (91)

Stephen Donnelly

Question:

91. Deputy Stephen S. Donnelly asked the Minister for Finance further to Leaders' questions on 3 October 2012, where the Minister for Education and Skills stated the Government was forced to repay €1 billion to the holders of unsecured bonds in Allied Irish Bank at the insistence of the EU IMF Troika, if he will provide documentation to substantiate this assertion; and if he will make a statement on the matter. [45214/12]

View answer

Written answers

The Deputy will be aware that when this Government took office it attempted to implement burden sharing with senior unguaranteed bondholders in particular institutions that were no longer core elements of the Irish financial system. Intensive discussions were held with our European partners and particularly President Trichet of the ECB in the run-up to the announcement of our stress tests on 31st March last year. At that time the President believed that such action was not in the interests of Ireland or the Euro Area. This matter was discussed again with President Trichet on a number of occasions including the Ecofin meeting in Poland in September 2011. As already indicated to the Deputy, AIB has an important mandate to supply credit and essential banking services across the nation. It is important that its business model remains intact so that it can eventually regain access to international funding markets in a meaningful way and eliminate its dependence on the Irish state.

Nevertheless, I would like to again reiterate that this Government is currently in discussions with our European colleagues in relation to securing a deal on the Irish bank debt and further detailed work will continue to ensure that the positive moves in Europe are harnessed to maximise the benefit to the Irish taxpayer.

Top
Share