Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I thank the Minister for his reply. I acknowledge two separate channels are open here. One is the possible ESM investment in the banks and the second is the Government's efforts to restructure or re-negotiate the promissory note arrangement in some way. I also recognise the real deadline on this issue is next March, when the next €3.1 billion falls due and when the 2012 €3.1 billion must be refinanced. The Minister will face a €6 billion issue in less than six months time, which is hugely significant for the country.

The promissory note issue is widely misunderstood, by commentators as well as politicians. People speak about the interest rate and the coupon being paid to the IBRC which, in the fullness of time, will be largely irrelevant. The promissory note is essentially being financed by relatively cheap emergency liquidity assistance from the central bank, so restructuring it in the absence of a writedown - which is the preferred option - in a way that would be advantageous to Ireland is not as easy as people make out and I acknowledge this. Its structure is widely misunderstood.

What is actually happening? How are these negotiations taking place? Is it at official level at this point? Are officials going over and back to Frankfurt? How much of the Minister's time is taken up with advancing the promissory note issue? The ECB is clearly the key stakeholder there. Will the ESM investment in AIB and Bank of Ireland be on the agenda of Eurogroup and ECOFIN later this month or possibly the European Council summit in about three weeks' time? I welcome the statement by the President of the European Parliament today but we need to have a re-affirmation from the European leaders of the June summit. We need that re-stated and reiterated this month.

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