Michael Noonan (Limerick City, Fine Gael)

As the Deputy is aware, the Government has been committed to reviewing the arrangements that were put in place to capitalise the Irish Bank Resolution Corporation, IBRC, formerly Anglo Irish Bank and Irish Nationwide. The purpose of this review is to determine if there is a way to reduce the overall cost to the State. Part of the capitalisation of IBRC was provided using promissory notes as consideration.

While the development in relation to the end of March promissory note payment is positive, we must continue to work towards the greater benefits that would derive from the re-engineering of the promissory note. There are potential improvements for the banking sector which could also stem from the ongoing technical discussions.

It is for these reasons that we must look at the recent developments as an initial step in a process. This is a medium-term project. The Government is focused on developing an alternative solution to the promissory note arrangement in IBRC.

It is too early at this stage of the process and indeed it would be inappropriate to predetermine what a successful outcome will look like or to indicate how the various stakeholders have reacted or may react to various proposals. We want to arrive at a successful conclusion that is in the interests of Ireland and the European Union.

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