IBRC Liquidation

Dáil Éireann Debate, Thursday - 23 April 2015

Thursday, 23 April 2015

Questions (67)

Catherine Murphy

Question:

67. Deputy Catherine Murphy asked the Minister for Finance the point at which the decision was made to start drafting of the Irish Bank Resolution Corporation Act 2013; if it is the case that the strained relationship which existed between the management of the corporation and his Department, referred to in correspondence from the time which has come to light very recently, had a bearing on the Government's decision to draft said legislation and appoint a special liquidator; and if he will make a statement on the matter. [16123/15]

Written answers

Minister for Finance

The ultimate decision to eliminate the Promissory Notes and liquidate IBRC was driven by careful consideration of the totality of costs and benefits to Ireland and the taxpayer of such action.

The decision to liquidate IBRC and exchange the Promissory Notes was taken with the expressed purpose of protecting the taxpayer, to end the exposure of the State and the Central Bank to IBRC, to enable the state to re-establish normalised access to the international debt markets, to resolve the debt of IBRC to the Central Bank, to restore confidence in the banking sector more generally and to provide for the orderly wind down of IBRC which was being supported, at a heavy cost to the State, by the Promissory Notes.

The relationship with the management of IBRC did not drive these strategic objectives, nor the decision making process surrounding the formulation, design and structuring of the Promissory Note transaction and liquidation of IBRC.