Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

As the Deputy is aware, the Government has been working very hard to secure a deal on the Irish bank debt and detailed work will continue to ensure that the positive moves in Europe are harnessed to maximise the benefit to the Irish taxpayer. These discussions have intensified on the back of the euro area summit statement of 29 June of this year, and the ongoing work is one of the Government’s key priorities.

A significant item on the agenda in all current discussions is the issue of the promissory note. I am glad to say that we are meeting strong appreciation of our situation and are able to have very constructive dialogue on our approach to this question. These discussions are considering all options for the restructuring of the promissory notes and related considerations in terms of the source of funding, the duration of the notes, the interest rate applicable and so forth, as well as potential avenues for the wider bank debt deal and the impact of any agreed deal for the IBRC.

There are clear benefits at stake for the State in these discussions. A reduction in the interest rate associated with the promissory note, the maturity profile of the notes and the availability of long-term financing for the IBRC would have a direct impact in reducing the amount the State must borrow, either directly or indirectly, to meet future promissory note repayments and could result in considerable benefits to the State.

It would be inappropriate for me to provide a more specific update as I am in continuing dialogue with our partners on the issue and all matters remain under consideration at this time. I can assure the Deputy that the terms being sought by the Government are those which are most likely to achieve the best possible outcome on behalf of the Irish taxpayer.

On the question of timing, I have indicated that we have a strong desire to achieve a deal in advance of the next promissory note instalment due in March next year. However, it is not possible to give more specific guidance because to do so could impede our ability to achieve the best possible results for the Irish taxpayer. None the less, every effort is being made to expedite the ongoing process.

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