Wednesday, 28 September 2011
Enda Kenny (Taoiseach, Department of An Taoiseach; Mayo, Fine Gael)
If the Anglo bondholders are paid, they will be paid from their own resources. This will not come from the taxpayer. The Minister for Finance has been dealing with this situation at the ECOFIN meetings. Deputy Adams has suggested it is very easy to have a write-down in respect of senior bondholders with the residual amount left in Anglo. The effect and consequence of this view, when it was mentioned in the case of Greece, was this contagion which immediately spreads into much bigger economies.
Deputy Adams says it is advisable to risk the reputation of the country and the advances we have made in the past number of months, both economically and every other way, just to do so. An alternative being pursued by the Minister for Finance is to examine what can be done with the promissory note signed off by the previous Government in respect of which the interest rate is more than 8% and which begins to be payable in 2013. If that can be dealt with by extending the maturity or whatever, the savings to the country will be substantially more and they will be in the public interest. Deputy Adams talks about a litany of failure. I encourage him to be very real in his contribution in the debate on the euro next week and we will see how credible and real are his proposals.