Michael Noonan (Limerick City, Fine Gael)
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No, the Deputy is missing the point. which I wish to explain because there is a lot of confusion about it. The Government paid the money in the first year because it fell due when we went into government in February 2011. The first demand came in and we paid it, as we did not know what would be the market reaction if we did not. The Government did not know what pressure would be put on - the usual pressure from Frankfurt - so it paid it in the first year. The Government refused to pay it in the second year and refinanced it through Bank of Ireland. Thereafter, the Government did the promissory note deal and at that time, €25 billion still was underpinned by the promissory note. As we had refinanced just over €3 billion with Bank of Ireland, the overall amount was €28 billion. All of that was refinanced by writing Government paper and lodging it in the Central Bank. The promissory note was a novel instrument but it did not have a market value. However, the Irish paper the Government created and which is in the Central Bank is now what is underpinning the loan and the Government will be obliged to service it for a long time. Nevertheless, the repayment schedule is way out.