Dáil Éireann Debate, Tuesday - 22 May 2012
250 Deputy Micheál Martin asked the Minister for Finance if he has spoken to Mr Olli Rehn following his recent supportive comments on easing Ireland’s burden of debt; and if he will make a statement on the matter. [19784/12]
Amharc ar fhreagra258 Deputy Micheál Martin asked the Minister for Finance his views on the recent comments made by ECB Chief Mr Mario Draghi in relation to the promissory note.; and if he will make a statement on the matter. [22700/12]
Amharc ar fhreagraI propose to take Questions Nos. 250 and 258 together.
As the Deputy is aware one has to read or listen very carefully to what emanates by way of statement from European Authorities. The general tone of such comments has followed the line that Ireland must honour commitments in relation to the repayment of debt. The Government is also committed to this principle. Commissioner Rehn and I both attend Ecofin meetings and this provides a regular opportunity to speak on the margins. Notwithstanding this, the Government is also committed to reviewing the arrangements that were put in place to capitalise IBRC. The purpose of this review is to determine if there is a way to reduce the overall cost to the State. Part of the capitalisation of IBRC was provided using promissory notes as consideration. The troika has agreed to engage in this process 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.
While the development in relation to the end March Promissory Note payment is a positive development we must keep our eye on the greater benefits which would derive from the re-engineering of the promissory note and also the potential improvements for the banking sector which could also stem from the ongoing technical discussions. Further it should be borne in mind that recent concerns in the Eurozone underpin the fact our problems are part of a wider European dilemma and to the need for solutions to address the Irish situation as part of an overall Eurozone/global solution.
It is for these reasons that we must look at the recent developments in relation to the Promissory Note repayment as an initial step to facilitate a project where, if we are successful, it will be in the medium term rather than immediately. These discussions will continue and the Government is focused on developing an alternative solution to the promissory note arrangement in IBRC. The ongoing discussions may also explore options to re-finance the long term Government bond issued in settlement of the March 31 payment. We all want to arrive at a successful conclusion that is in the interests of Ireland and the EU.
