Pearse Doherty
Ceist:170. Deputy Pearse Doherty asked the Minister for Finance his plans to apply for a retrospective recapitalisation of Ireland's pillar banking debt; and if he will make a statement on the matter. [6162/16]
Amharc ar fhreagraWednesday, 6 April 2016
Ceisteanna (170)
Freagraí scríofa
Following the creation of the Direct Recapitalisation Instrument (DRI) on the 8th December 2014, in accordance with Article 19 of the ESM Treaty, there now exists a specific provision which allows a potential retroactive application of the instrument on a case-by-case basis and by mutual agreement. This optionality remains in place however, unlike back in 2012, the ESM is no longer the only option open to us to recover the money provided to recapitalise our banks.
I have previously stated that I see no benefit in making an application to the ESM at this time. Investors are now willing to support Irish banks again and the market value of our investments has improved accordingly. Ultimately it will be an assessment as to which route - ESM or the markets - represents the best value which will determine these decisions. My overall objective in relation to the State's investments in the banks has always been to maximise the return to the Irish taxpayer.
In relation to AIB specifically, which is our largest investment, I have previously stated that an Initial Public Offering or IPO on the stock market looks like the most likely exit route for the State, however there is still work to be done in assessing how we might structure our gradual exit from the bank and particularly when we should start this process. My Department has recently appointed an Independent Financial Advisor, Rothschild, to provide advice in this regard. The appointment will help provide the Government with all the information and optionality needed to make an informed decision about our investment.