Seán Fleming (Laois-Offaly, Fianna Fail)
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Question 69: To ask the Minister for Finance in view of the recent ECB interest rate increase, the implications and costs of this for Ireland in respect of the interest rate charged on our financial assistance package. [21687/11]

Michael Noonan (Limerick City, Fine Gael)
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There is no automatic linkage between ECB interest rate changes and the interest rates charged by the EU and the IMF on their various loans to Ireland. In the case of the IMF, the Special Drawing Rights (SDR) interest rate is somewhat influenced by a European 3-month collateralised lending rate, EUREPO, which is correlated, but not linked, to the ECB interest rate. The other elements of the IMF's SDR interest rate are the returns on 3-month U.S. Treasury Bills, three-month U.K. Treasury Bills and three-month Japanese Treasury Discount Bills. However, this SDR interest rate is a minor component of the overall cost and most of the IMF interest rate to Ireland is made up of surcharges. The NTMA has converted the interest rate liabilities to the IMF to fixed rate euro borrowings thereby averting any minor influence that ECB interest rate changes may have on the IMF interest rate for borrowings already entered into.

In the case of new borrowings, the level of short term interest rates is one of a number of factors influencing the level of long term interest rates and through this the cost of borrowing. In the case of the EFSF and EFSM, the interest rates charged to Ireland on existing borrowings are fixed and, therefore, not directly influenced by ECB interest rate changes so that any influence is indirect. With respect to their future lending to Ireland, it is not possible to say to what extent ECB interest rate changes will have a bearing.

Tommy Broughan (Dublin North East, Labour)
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Question 70: To ask the Minister for Finance if he will consider the abandonment of payment of promissory notes for Anglo Irish-NBS from 2012 onwards; and if this would enable him to abandon most of the projected cuts of €4.6 billion plus in the December 2012 budget; and if he will make a statement on the matter. [21700/11]

Tommy Broughan (Dublin North East, Labour)
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Question 71: To ask the Minister for Finance if he would agree that the ending of promissory note payments for Anglo Irish-NBS would be the best outcome for the Irish persons and to avoid a sovereign default; and if he will make a statement on the matter. [21701/11]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 70 and 71 together.

It is the Government's policy to pay its debts when payment is due. Promissory Notes issued to Anglo Irish Bank and INBS are no different to any other Sovereign debt in this respect and will continue to be honoured by the Government as a matter of policy. Abandonment of payments of Promissory Notes by the Government would in fact amount to a Sovereign default which would have broader, negative consequences for the Irish State and its persons.

Tommy Broughan (Dublin North East, Labour)
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Question 72: To ask the Minister for Finance his plans to address distressed mortgages and provide security for deeply worried young families; and if he will make a statement on the matter. [21702/11]

Michael Noonan (Limerick City, Fine Gael)
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I would like to inform the Deputy that there are measures in place to assist mortgage holders who are in genuine difficulties with regard to the payment of their mortgages. The Deputy will be aware of the work of the Expert Group on Mortgage Arrears and Personal Debt. This Group published its final report in November 2010. All of the Groups recommendations are listed in Chapter 2 of the Report which can be accessed at www.finance.gov.ie.

One of the recommendations of the Group was that lenders should offer a Deferred Interest Scheme (DIS) to borrowers. Under this Scheme, subject to certain criteria being satisfied, borrowers are allowed to pay at least 66% of their mortgage interest but less than 100%. Payment of the balance may be deferred for up to 5 years. Lenders representing the majority of the market have already implemented (or indicated their willingness to implement) the Groups proposals for a DIS or a variation of it. While the Scheme is voluntary for all lenders, those who have signed up in support of the Scheme will be monitored by the Central Bank to ensure compliance.

Since the publication of the Groups Report, the Code of Conduct on Mortgage Arrears (CCMA) has been revised by the Central Bank to reflect many of the Groups recommendations, including key recommendations relating to the introduction by all lenders regulated by the Central Bank of a standardised Mortgage Arrears Resolution Process (MARP). The most significant changes in the revised CCMA include:

· penalty interest charges may not be imposed on borrowers in arrears who co-operate with the MARP,

· harassment of borrowers through unsolicited communication is outlawed,

· borrowers in financial difficulties, but not in arrears, are allowed to come under the MARP,

· when determining the 12 month period the lender must wait before applying to the courts to commence legal action, the lender must exclude any time period during which the borrower is complying with the terms of an alternative repayment arrangement, making an appeal to the internal appeals board or making a complaint to the Financial Services Ombudsman.

The revised CCMA came into effect on 1 January 2011 and can be accessed at www.centralbank.ie. Lenders are required to comply with the CCMA as a matter of law. With effect from 30 June 2011, lenders must have in place the requisite systems and trained staff necessary to support the implementation of the MARP. Financial assistance is available to eligible claimants under the Department of Social Protections Mortgage Interest Supplement Scheme. People in debt or in danger of getting into debt can also avail of the services of the Money Advice and Budgeting Service. This is a national, free, confidential and independent service.