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

I am satisfied that every available and appropriate opportunity to advance Ireland's position in regard to legacy bank debt with our European partners is being availed of. As the Deputy is aware, the Irish Government has been working extremely hard to secure a deal on the Irish bank debt with our European partners and detailed work will continue to ensure that positive moves in Europe are harnessed to maximise the benefit to the Irish taxpayer. On 14 December 2012, the European Council stated:

[O]nce an effective SSM is established, the ESM will be able to recapitalise banks directly. An agreement on the operational framework supporting this possibility, including the definition of legacy assets, should be agreed as soon as possible in the first semester of 2013.

Aside from the issue of when this new instrument will become available, there are a number of other issues that have yet to be worked through, such as how these banks would operate under ESM ownership, what governance arrangements would be put in place between the fund and the banks themselves and between the ESM and member state governments. We need to consider these wider considerations in the months ahead.

Ireland continues to be fully engaged in this process within the Eurogroup and among Heads of State or Government. Furthermore, officials from my Department participate in technical meetings with the ESM and other member states. In this regard and despite recent media reports, discussions remain ongoing and no conclusion has been reached. This issue is not on the formal agenda for EU meetings but it is discussed in the context of our successful programme and we continue to work with our troika partners towards a solution.

In regard to the issue of the IBRC promissory notes, I am glad to say we meet with strong appreciation of our circumstances and we are able to have very constructive dialogue on our approach to this question. This work is one of the Government's key priorities and will remain a key focus during the EU Presidency.

I have stated previously that I am working to try to achieve a solution before the next scheduled instalment on the promissory note at the end of March. It would be very difficult for Ireland to make a payment on that date so we continue to work on a deal with our European partners to resolve this issue.

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