Billy Timmins (Wicklow, Fine Gael)
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Question 65: To ask the Minister for Finance if he was approached by the EU Commission, the European Central Bank or the International Monetary Fund with offers of financial assistance during the period January 2010 to 31 October 2010; and if he will make a statement on the matter. [44244/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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It is important to put recent developments in context. Following agreement on the Euro Area Loan Facility to Greece earlier this year, the Ecofin Council decided in May 2010 on a package of European Financial Stability arrangements in conjunction with the IMF. These were intended, to safeguard the financial stability of the EU and the euro area and to support Member States in difficulties caused by exceptional circumstances beyond their control. Under these arrangements the request for support must come from the member State concerned. The arrangements do not provide for an offer by the EU Commission, the ECB or the IMF of such support. The Deputy will be aware, however, that the Eurosystem has been providing liquidity support to the Irish banking sector as part of its normal monetary operations. The Eurogroup meeting on the 16th November welcomed the intention of the Government to engage in a short and focused consultation with the Commission, the ECB and the IMF in order to determine the best way to provide any necessary support to address continuing market risks, especially as regards the banking system, in the context of the four-year budgetary plan and the upcoming budget.

Ireland formally applied to the EU authorities on 21 November 2010 for financial assistance in the context of a joint EU-IMF programme. The request for external assistance has been made under the terms of the European Financial Stabilisation Mechanism, the European Financial Stability Facility and the IMF assistance programme. EU and Euro area financial assistance will be provided under a policy programme which will be negotiated with the Irish authorities by the Commission and the IMF, in liaison with the ECB. The Government has welcomed the agreement reached at the Eurogroup meeting on 21 November that assistance to Ireland is warranted to safeguard financial stability in the EU and in the Euro Area. This assistance may possibly be supplemented by bilateral loans to be provided by EU Member States. Since the Eurogroup meeting on 16 November, there has been very constructive and positive engagement with the bodies mentioned.