Dáil Éireann Debate, Thursday - 21 February 2013
99. Deputy Michael McGrath asked the Minister for Finance his views on the comments by German Bundesbank President Jens Weidmann regarding the revised arrangements in respect of the promissory notes; and if he will make a statement on the matter. [9524/13]
View answerAs the Deputy is aware the transaction was unanimously noted by the ECB Governing Council, as indicated by President Draghi on the 7th February. Furthermore on the 18th February President Draghi stated that the promissory note deal was a positive step for Ireland. I welcome the outcome of the ECB Governing Council meeting earlier this month and I am not concerned that the transactions accompanying the liquidation of IBRC, involving the exchange of Promissory Notes for Government bonds, is in breach of any Articles of the Treaty on the Functioning of the European Union. The Central Bank of Ireland has carefully examined the legal and financial issues involved in the transactions and is satisfied that there is no such breach.
The Irish Government fully understands the need for the ECB to ensure it is operating within its mandate. As outlined by the Central Bank of Ireland on the 7th of February, “the bonds will be placed in the Central Bank of Ireland’s trading portfolio and sold as soon as possible, provided that conditions of financial stability permit. The disposal strategy will of course maintain full compliance with the Treaty prohibition on monetary financing.”
The Central Bank of Ireland has undertaken that minimum of bonds to be sold in accordance with the following schedule: €0.5bn by the end of 2014, €0.5bn per annum from 2015 to 2018, €1bn per annum from 2019 to 2023 and €2bn per annum from 2024 onwards.
