Brian Hayes (Dublin South West, Fine Gael)

I propose to take Questions Nos. 8 and 9 together.

As the Deputy is aware, I have indicated that I am committed to reviewing the approach to the promissory notes with a view to reducing the overall cost to the State of correcting the banking system. The troika has agreed to engage in a process with Irish officials to produce a common paper which will consider options for re-engineering the notes in terms of the maturity of the notes, the interest rate, the cash flows and so on. Work is ongoing on this review.

The Deputies will appreciate that there are several parties involved in this process and it involves all the member states of the European Union, particularly the members of the eurozone. The Deputies will also appreciate that the situation in the eurozone remains unsettled and is changing on a daily basis. In these circumstances, it would not be appropriate for me to comment in any detail about various options under consideration in advance of the conclusion of the considerations and the production of a common paper. Suffice to say that a broad range of options are under detailed consideration. Additional detail on the various proposals will be available when the ongoing work is further advanced.

In tandem with this technical review, the Government has commenced a campaign at political level to garner support for an approach which is more beneficial to the Irish State. The Minister has met the Commissioner Mr. Rehn and Mr. Mario Draghi, President of the European Central Bank, as well as a number of his counterparts from member states to progress the matter. The Taoiseach has also met and discussed the issue with a number of EU Council members.

Unfortunately, I am not in a position to indicate when the review of options and the negotiations will be completed. The Government is aware of the payment due on the promissory note at the end of March 2012. However, given the nature of advocacy and the decision-making process in the EU, I would not expect this matter to be concluded in the short term. I do not expect that any possible solution will be adversely impacted if we do not have the matter resolved by the end of March. The Deputy will be aware the payment due in March is, in fact, the second payment off the principal amount, as the last was paid last year.

The Government is committed to achieving an outcome which not only serves Ireland's best interests but is also in the best interests of our external partners. The Government is of the view that the global and European economies and the financial markets will benefit from a speedy return to growth in the Irish economy. It is the view of the Government that this solution must involve a reduction in the overall burden to the State of restructuring our banking sector in terms of either or both the cost and the timing of the repayment of that debt.

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