Dáil Éireann Debate, Wednesday - 18 September 2013
215. Deputy Brendan Griffin asked the Minister for Finance the efforts to date to separate legacy banking and sovereign debt; the efforts he will make in the future; if he is confident of a positive deal for Ireland; and if he will make a statement on the matter. [37970/13]
Amharc ar fhreagraAs the Deputy is aware, on 20 June 2013 the Eurogroup of euro area Finance Ministers agreed a framework under which the European Stability Mechanism (ESM) will operate its direct recapitalisation instrument. In addition, the Eurogroup also agreed to consider retroactive recapitalisation of banks on a case-by-case basis once the instrument enters into force. This provides one potential avenue for Ireland to recoup some of the funds it put into the banks in the wake of the banking crash. As each case will be considered on its merits, it would not be appropriate for me to speculate on the implications of this agreement. Both AIB and Bank of Ireland have forecast they will be profitable next year, and coupled with a growing economy, it is likely that these factors will enhance the valuations of the banks. In this context, other potential purchasers may emerge and we may decide that they offer a more attractive route to exit our investments. Therefore, I do not want to tie the future of the banks or the banking system solely to the ESM, but it is vital that we have the option still in place.
