Jan O'Sullivan (Limerick East, Labour)
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Question 47: To ask the Minister for Finance his views on comments from the ECB regarding the withdrawal of extraordinary liquidity measures supporting European banks; the way he expects this to impact on the functioning of the National Asset Management Agency and the liquidity position of banks here; and if he will make a statement on the matter. [44873/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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It is important to say that NAMA has never been predicated on extraordinary liquidity measures. These measures were introduced at the discretion of the ECB to deal with the liquidity crisis affecting the European wide banking system. A distinction needs to be drawn between extraordinary liquidity and normal liquidity operations of the ECB. The securities provided to financial institutions by NAMA as consideration for acquired loans was always envisaged to be used in normal monetary policy operations of the ECB.

Irish banks and indeed many European banks have obtained liquidity support provided by the European Central Bank. Dependence on ECB lending has been significantly reduced, however, indicating that the liquidity positions of the Irish banks is improving.

The withdrawal of exceptional measures will, as ECB President Trichet has stated, be on a "phased basis in a timely and gradual fashion" and "as the situation normalises". When these exceptional measures are withdrawn, financial institutions can still avail of normal ECB refinancing operations.

Conditions in international financial markets have improved substantially in recent months and Irish banks have benefited from improved funding conditions which has already been reflected in reduced recourse by Irish banks to Eurosystem funding.