Dáil Éireann Debate, Tuesday - 1 May 2012
179 Deputy Stephen S. Donnelly asked the Minister for Finance with regard to the recent payment of €3.1 billion made to IBRC under the revised promissory note arrangement, the amount of that payment that was needed by IBRC to meet scheduled liabilities for 2012. [21476/12]
Amharc ar fhreagraThe Deputy will be aware that the March 2012 instalment of the promissory note was settled using a long term Government bond. The settlement of the instalment with a Government bond means that the State did not have to make a cash payment in respect of the 2012 Promissory Note payment to IBRC.
In relation to the scheduled liabilities of the bank, the Deputy will also be aware that the Board of the bank is responsible for the day to day operations of the bank. I have been informed by IBRC that the bank and banks in general runs their cash inflows and outflows on a collective (fungible) basis. The bank has also indicated that it does not manage, identify or allocate specific maturing asset inflows against specific contractual maturities.
The bank is funded largely by emergency liquidity assistance (ELA) from the Central Bank of Ireland. As these borrowing are short term rolling facilities, which are subject to the ongoing non-objection of a majority the ECB governing council, there are no scheduled ELA liabilities. However, notwithstanding this, both the Government and the ECB are keen to both get IBRC off large scale emergency borrowings from the Central Bank of Ireland and to find a way to re-engineer the promissory notes. The bank's scheduled liabilities relate to other public debt. These schedule liabilities, as noted above, are managed on a collective basis alongside the other cash inflows and outflows of the bank.
