Dáil Éireann Debate, Tuesday - 13 March 2012
132 Deputy Micheál Martin asked the Minister for Finance if there were discussions on European banks releasing new credit to businesses across Europe in order to encourage growth; the details that were discussed, particularly in the context of the further half billion euro being injected as part of the three year programme; and if he will make a statement on the matter. [13492/12]
Amharc ar fhreagraI am not aware of any specific new proposals at EU level in terms of measures under discussion for European banks to provide credit for new business across Europe, although measures to support the small and medium enterprise sector are regularly discussed. In relation to the matter of the half billion euro injection for a three year period, I assume that the Deputy is referring to the recent ECB initiatives in terms of long term refinancing operations. As the Deputy is aware the ECB is independent and neither I nor my officials would have been party to this initiative. That said, as has been recently commented on both here and abroad this is a welcome initiative.
Finally, in relation to measures that this Government has taken in terms of enhancing the provision of credit for businesses here, as you know there have been a variety of initiatives launched and I continue to expect that the financial institutions will meet their obligations in this regard.
133 Deputy Micheál Martin asked the Minister for Finance if he will outline all of the meetings at which he has asked the European Union for assistance in dealing with Ireland’s banking bailout; if he will provide an update on the progress made on this issue; and if he will make a statement on the matter. [13487/12]
Amharc ar fhreagraAs the Deputy is aware the Government 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 of the Promissory Notes In tandem with this review the European authorities have opened a discussion on how best the Irish banking system and the Irish State can benefit from having a final restructuring of some of the elements of the banking sector. The overall purpose would be to ensure that banks in which the State has a major investment would enhance in value, making it possible further down the line to sell the State shareholdings in those banks the proceeds of which would, in turn, reduce the overall debt situation. A number of approaches are under consideration but it must be emphasized that nothing is agreed at this point.
The Government has commenced discussions at political level to garner support for an approach which is more beneficial to the Irish State.
As already indicated I have met with Commissioner Rehn and Mario Draghi President of the European Central Bank, in this regard. The matter has also been discussed at every opportunity and at various levels in the European arena. The Deputy will appreciate that much of the discussions, at this point, are on an informal basis. As soon as the technical discussions are concluded a more formal and structured approach will be adapted to ensure political support.
