Written answers

Wednesday, 12 January 2011

2:30 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 313: To ask the Minister for Finance the degree to which he and-or his Department is in regular contact with EU institutions and the International Monetary Fund to ensure the success of this country's financial strategy; and if he will make a statement on the matter. [1667/11]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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As is normal in these circumstances, officials of my Department are in ongoing contact with their counterparts in the EU Commission, the IMF and the ECB in relation to implementation of the joint programme of financial assistance which has been agreed for Ireland. I understand that frequent contact is also taking place between the staff of the Central Bank, the Financial Regulator's Office and the external funding agents. The policy conditionality associated with the EU-IMF Programme for Ireland is set out in the Memorandum of Economic and Financial Policies and in the Memorandum of Understanding on Specific Economic Policy Conditionality. These documents together with the Technical Memorandum of Understanding which are collectively referred to as the MoU have been laid before the Houses of the Oireachtas.

As regards the fiscal consolidation aspects of the agreement, as the Deputy will be aware, the release of the first instalments of financial assistance is conditional on the successful adoption of Budget 2011. In this regard, the Social Welfare Act 2010 is in force and the Finance Bill 2011 is due to be introduced on 25th January 2011.

As part of the quantitative performance criteria of the Technical Memorandum of Understanding, a target for the end-2010 Exchequer primary balance – the Exchequer balance excluding debt interest payments – of -€15.3 billion was set. Excluding debt interest payments of just under €4.1 billion, the Exchequer primary balance in 2010 was -€14.65 billion, meaning the target was met. This data was relayed to the IMF, European Commission and European Central Bank on Wednesday, 5th January. I can also confirm that the data provision obligations on my Department, the NTMA and the Central Bank are being pursued in line with Annex 1 of the Memorandum of Understanding.

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