Oireachtas Joint and Select Committees

Thursday, 7 July 2016

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach

Single Resolution Board (Loan Facility Agreement) Bill 2016: Committee Stage

11:00 am

Photo of Eoghan MurphyEoghan Murphy (Dublin Bay South, Fine Gael)
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As Deputy D'Arcy states, it is an issue of classification in so far as how the loan would be classified on the State's balance sheet. Would it be classified as a debt or an asset, depending on from which stream the money comes? Ideally, one would not want to take it on to the debt position or stock of debt of the State. Again, we are discussing a scenario in which things have got pretty bad for at least one entity and it has entered a resolution process. One would hope that no further problems would arise in the wider economy, the eurozone or anywhere else. However, if one had, for example, the cash on balance that the National Treasury Management Agency, NTMA, has available to it and the NTMA were to make the loan facility available, the debt stockpile would not be affected.