Bernard Durkan (Kildare North, Fine Gael)
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Question 75: To ask the Minister for Finance the full extent to which he has committed to a bank guarantee support or rescue package; the extent to which this has affected or is likely to affect economic recovery; the degree, if any, to which consideration has been given as to the way it is proposed to rescue a heavily indebted or in some cases insolvent banking system and at the same time encourage economic growth and generate employment with increased competitiveness; and if he will make a statement on the matter. [34059/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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A healthy banking system is vital to the functioning of the economy and the Irish Government is fully committed to a strategy of restoring fully the Irish banking system. Much progress has been made to date: NAMA has been established and the first tranches of loans have been transferred, restructuring or viability plans have been prepared for all of the guaranteed institutions and plans have been put in place to restore the capital positions of those institutions by the end of this year to levels at which they can withstand future losses, even under very stressed conditions.

The restoration of the banking sector to health and the promotion of economic growth are interlinked, and the steps we are taking are intended to ensure that the Irish banks will be in a position to make a strong contribution to overall economic recovery. Indeed, the two largest banks, Bank of Ireland and Allied Irish Banks, each have committed to make available not less than €3 billion each year in new or increased credit facilities to SMEs for the next two years. They have submitted their lending plans to the Department of Finance and the Credit Reviewer, John Trethowan. Mr Trethowan, an experienced banker, has examined these plans and considers that they are credible basis for delivering on their commitments to support viable businesses in all sectors of the economy and in every area of the country.