Michael McGrath
Question:72. Deputy Michael McGrath asked the Minister for Finance Ireland’s direct and indirect exposure to Greek national debt; and if he will make a statement on the matter. [26794/15]
View answerThursday, 2 July 2015
Questions (72)
Written answers
Ireland participated with pooled bilateral loans to Greece under the Greek Loan Facility (GLF) in 2010. Ireland provided €347 million before stepping out of the GLF upon entering our own programme at end-2010. Ireland also stepped out of being a guarantor for the European Financial Stability Fund (EFSF) after programme-entry and, therefore, Ireland is not a guarantor for the EFSF loans, including those for Greece. Therefore, the Irish sovereign's direct exposure to Greek national debt is limited to those loans provided in 2010 - €347 million (0.2 per cent of GDP).
The Central Bank of Ireland's only direct exposure is to the Eurosystem's holding of the Securities Markets Programme (SMP) portion of Greek government bonds; this exposure is limited and has been provided for. The share of any losses arising indirectly for the Central Bank of Ireland through other Eurosystem exposures is limited to the CBI's capital key (1.7%).
The National Treasury Management Agency has advised that none of the Exchequer cash and related financial asset investments are invested in Greek sovereign debt.
More broadly, I would point out that direct trade and financial linkages between Ireland and Greece are small.
And while there is some potential for second round and indirect effects, I would highlight that as a union we are in a much stronger place than during the sovereign debt crisis in the early years of this decade. Financial market developments in the euro area (outside of Greece) have been relatively calm in recent days, suggesting that the firewalls created and the governance changes made during the crisis are having the desired effect .
Ireland, together with the other Member States, understands and empathises with the difficult situation faced by the Greek people which has been exacerbated over the last number of weeks by the uncertainty surrounding the programme negotiations. This is why there has been a willingness to negotiate a way forward which takes account of the realities of the situation in Greece while also respecting existing commitments.