Dáil debates

Wednesday, 24 October 2012

European Council Meeting: Statements

 

11:45 am

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail) | Oireachtas source

That was the first time he had put that on the record.

Are we looking for the ESM to buy our stakes in AIB and Bank of Ireland? Are we looking for the ESM to finance our repayment of the promissory notes? Are we examining all parts of bank-related debt or just the bank shares? What is the Government's definition of "sustainability"? Unlike Spain, we are not looking for extra capital to be put into our banks. They have enough capital; they have been recapitalised. It is arguable that they are perhaps among the best capitalised in the international system because of the State's investment. The book value of the State's capital in the banks is just over €29 billion. The ESM purchasing that from us would be done only at current market prices. Given that the investment is booked as an asset in our net debt figures, selling it would either have no impact on our net debt or it would make it worse by forcing us to book a loss at close to the bottom of the market. Money saved in interest payments might be significant, but there is no indication whatsoever how much is involved or the technicalities of that.

Unlike the Spanish Government our Government has failed to provide even the most basic information on what is being discussed or its implications. Regarding the promissory notes, it is my understanding that at a minimum those countries involved in the Helsinki statement believe that this is a matter purely between Ireland and the European Central Bank. They do not believe it is a legitimate use of the ESM and they do not believe that there is any legitimate expectation on this front contained in June's deal.

On a number of occasions recently, the Taoiseach has deliberately misquoted me in exchanges here. He did so again yesterday with his claim that I said it would be easy to get the European Central Bank, ECB, to restructure the promissory note.

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