Dáil debates

Thursday, 5 February 2009

Stabilisation of the Public Finances: Motion (Resumed)

 

12:00 pm

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)

We are proceeding in the correct way in banking matters because we need to get this right. We are following the Swedish example. The first step taken in Sweden was to guarantee the institutions without qualification, which is what Ireland did on 30 September last year. The second step taken by the Swedish authorities during their crisis in the early 1990s was to examine the structure of the institutions to ascertain whether they should be nationalised, capitalised or left in private hands. While the bulk of these institutions were nationalised, the conditions in different countries vary. In the case of Ireland, we have nationalised one of the institutions and will capitalise the two principal institutions. Discussions on this matter are not yet complete. Risk is the next matter which will require to be addressed following capitalisation.

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