Enda Kenny (Mayo, Fine Gael) | Oireachtas source

Deputy Burton raised the question of AIB. The Minister for Finance has taken a lead role on this. Under EU fiscal rules, the proceeds of any sale may not be used to fund increased expenditure irrespective of whether such expenditure is classified as current or as capital. On the accounting treatment of any proceeds from such a transaction, the position is that the sale of such financial assets does not result in a beneficial impact to the general Government balance under EUROSTAT rules. This is because it is classified as a financial transaction whereby it is essentially the exchange of one form of assets, such as shares, for another kind, such as cash. Consequently, the sale of any share-holding in a bank would not count as general Government revenue, and would not create any scope for increased spending on the basis of the proceeds that are realised. There will be no increased capacity for spending following any sale of bank shares. The Minister for Finance will make his decision on this matter in the next 48 hours.

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