Brian Hayes (Dublin South West, Fine Gael)

-----and then proceeded to nationalise it. The problem is that reneging on that contract is seen, from the European perspective, as a form of default. We are arguing that the bank is effectively now functioning as a type of financial warehouse in that its task, over a period of time, is to outwork the assets and liabilities that are there. We are making progress in articulating that to people. Deputy Broughan and the other Deputies who attended the Bundestag recently will have heard the very strong German view, which crosses party lines, that this is a sovereign debt commitment.

I reiterate that if we were to take the position that the State will not meet that commitment, there would be a dramatic effect on the reputation of the country just as we have moved from the collapse phase to the recovery phase.

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