Tuesday, 13 May 2014

Questions (217)

Jim Daly

Question:

217. Deputy Jim Daly asked the Minister for Finance if he will confirm the savings achieved by not availing of a post-bailout precautionary credit line, which would have incurred up-front charges from both the IMF and the ESM; and if he will make a statement on the matter. [21492/14]

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Written answers (Question to Finance)

The Government's decision on 14 November 2013 that Ireland would exit its EU-IMF programme on 15 December 2013 without a pre-arranged precautionary credit line, followed a broad consultation process and a careful and thorough assessment of all the available options. While the decision was finely balanced, it is the case that since taking the decision we have enjoyed a significant amount of support and the markets have responded positively.

Both the International Monetary Fund (IMF) and the European Stability Mechanism (ESM) apply upfront charges for the precautionary credit lines that they provide to countries that wish to avail of such facilities. The details of how these precautionary lines work and the charges that might arise are to be found on the IMF and ESM web sites. As Ireland exited our EU-IMF programme without the need for a precautionary credit line the issue of such charges does not arise.