Dáil Éireann Debate, Tuesday - 12 February 2013
211. Deputy Pearse Doherty asked the Minister for Finance if he will provide an assessment as to whether the State now qualifies for the ECB’s outright monetary transactions scheme; if the State now qualifies, his basis for that belief; and if he does not believe the State now qualifies, the basis for that belief and any additional actions needed so as to qualify. [6629/13]
View answerThe Governing Council of the ECB made a decision to establish the Outright Monetary Transaction (OMT) scheme on 2nd August 2012, and issued a press statement on 6th September 2012 which outlined its technical features. This press statement sets out that a necessary condition for OMT is strict and effective conditionality attached to an appropriate European Financial Stability Facility/European Stability Mechanism (EFSF/ESM) programme. Such programmes can take the form of a full EFSF/ESM macroeconomic adjustment programme or a precautionary programme (Enhanced Conditions Credit Line), provided that they include the possibility of EFSF/ESM primary market purchases. The ECB have also stated that OMT may also be considered for Member States currently under a macroeconomic adjustment programme “when they will be regaining bond market access”.
I believe the ECB’s announcement regarding its OMT programme is a significant development and is viewed as such by the financial markets.
The ECB press statement also notes that the ECB’s Governing Council will decide on the start, continuation and suspension of OMT, following a thorough assessment, in full discretion and acting in accordance with its monetary policy mandate. The decision on whether to grant OMT or otherwise in any particular case is therefore a matter for the ECB.
