Dáil Éireann Debate, Wednesday - 1 February 2012
55 Deputy Charlie McConalogue asked the Minister for Finance if he agrees that the European Central Bank-driven blockages to burning bank bondholders should be removed and that new terms should be given for funding in respect of bank recapitalisation; if he has requested this action; the responses he has received; and if he will make a statement on the matter. [5171/12]
Amharc ar fhreagraThe Government is committed to delivering a return to a successful vibrant economy. In this context I have indicated that there is no private sector involvement for senior bank paper or Irish Sovereign debt without the agreement of our external partners. This commitment has been agreed with out external partners and is now the basis on which Ireland's future financing strategy is built. This strategy is working well as evidenced by the reduction in pricing of Irish Sovereign debt in the secondary markets and the successful bond exchange offer by the NTMA.
As indicated the Minister is committed to reviewing the approach to the Promissory notes with a view to reducing the overall cost to the State. The Troika have agreed to engage in a process with Irish Officials to produce a common paper which will consider all options for restructuring the notes in terms of the source of funding, the duration of the notes, the interest rate etc. In tandem with this technical review the Government has commenced an intensive campaign at political level to garner support for an approach which is more beneficial to the Irish State. I have met with Commissioner Rehn and Mario Draghi, President of the European Central Bank recently to progress the matter.
