Dáil Éireann Debate, Tuesday - 7 March 2017
165. Deputy Catherine Murphy asked the Minister for Finance further to Parliamentary Question No. 55 of 28 February 2017, the reason his Department acted as a guarantor for a bank (details supplied) regarding the €10 billion facility deed from the Central Bank; the purpose and or intended use of the €10 billion facility deed, in view of his Department's involvement; and if he will make a statement on the matter. [11858/17]
View answerDuring the latter half of 2010, Irish banks were encountering difficulties in sourcing funding. In order to allay these difficulties, the Central Bank of Ireland entered into facility deed agreements with a number of banks, including Bank of Ireland. Under these agreements, the Central Bank of Ireland could make loans to a relevant bank, by way of emergency liquidity assistance, which would be guaranteed by the Minister. The bank, in turn, agreed to indemnify the Minister against any payment the Minister made in relation to the guarantee. When the agreement between the Central Bank of Ireland and Bank of Ireland was put in place, it was the policy of the Government at that time that the Central Bank of Ireland should not incur a loss in the provision of emergency liquidity assistance in support of the banks.
