Eamon Gilmore (Dún Laoghaire, Labour)

In recent months the Government has been involved in technical discussions to reduce the burden of debt associated with the recapitalisation of the banks. In particular, its focus has been on the promissory note arrangement made to fund the Irish Bank Resolution Corporation, IBRC, formerly Anglo Irish Bank and the Irish Nationwide Building Society. This is an arrangement that requires the State to make cash payments of €3.06 billion each year to the IBRC.

There have been some developments on this issue in recent days. While the discussions with the European authorities on the general issue continue, the Government is negotiating with the European Union authorities on the basis that the €3.06 billion cash instalment due from the Minister to the IBRC on 31 March under the terms of the IBRC promissory note could be settled by way of the delivery of a long-term Irish Government bond. The details of this arrangement must still be worked out and I reiterate the Minister's statement last night that discussions are ongoing. However, the obvious use of a Government bond would have a positive cash flow benefit for the State, as it would free up the €3.06 billion required to pay the promissory note.

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