Enda Kenny (Mayo, Fine Gael)

I mentioned this possibility in Dublin Castle some weeks ago and I note the IMF has made similar comments. There is concern being expressed about the banking situation in Spain, for instance, which may require an analysis similar to what was carried out in this State. There is no appetite for a second situation arising in this country where the State would have to borrow to pay off the banks. In the event that something like that were to happen in another country and the ESM were to be availed of to capitalise those banks, I am of the view that the same would have to be made retrospective to Ireland. That is a possibility as an alternative to what is currently being discussed with the troika by the Minister for Finance and the Minister for Public Expenditure and Reform in respect of the promissory notes, with a view to making our recapitalised debt - the moneys borrowed to pay off the banks and put onto the sovereign debt - more manageable in the context of our deficit and, therefore, our debt repayments. These matters are being monitored closely by Government and, in respect of the promissory notes, are the subject of continuous discussion between the Department, the troika and the European authorities.

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