Michael Noonan (Limerick City, Fine Gael)

It is the actual draw-down. The Deputy will recall that when I became Opposition spokesperson for finance at the start of the autumn session, this became an issue. At the time the advice was that a reduction in the interest rate was not possible. That changed as we came to Christmas and Commissioner Ollie Rehn in particular seemed to move his position. I know the Deputy had discussions with him at the time. The Commission was moving in advance of the politicians, which is usually the way in Europe if progress is to be made. The Commission proposes but the political people make decisions.

After Christmas the process began to move to the political side and very significant progress has been made. Considering the drafting of the communiqué after the meeting of the heads of state, it is indicated that a 1% reduction will be given on the Greek loans and the term will be extended in return for a €50 billion privatisation programme in Greece. It is also indicated that the pricing on the EFSF will be reduced by 1% but the only country availing of that is Ireland. The Greek arrangements were in place before the EFSF was introduced. It is agreed by the 27 members that there will be a 1% reduction. There have been interventions on the quid pro quo involving Ireland but there is no quid pro quo written into the communiqué; there is a reduction in the price of moneys drawn from the EFSF, with Ireland the only country drawing down from it. I hope this will be resolved in the coming weeks but it is difficult to know what will happen in the next few days in Europe as there are many other issues.

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