Michael McGrath (Cork South Central, Fianna Fail)
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Question 106: To ask the Minister for Finance when he expects to have the next formal opportunity to raise the issue of an interest rate reduction on Ireland's EU-IMF loan facility with our European partners; and if he will make a statement on the matter. [22288/11]

Michael Noonan (Limerick City, Fine Gael)
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A meeting of the Heads of State or Government of the Euro Area will be held today, 21 July 2011, in Brussels at the invitation of the President of the European Council, Mr Herman Van Rompuy to discuss the financial stability of the Euro Area as a whole and the future financing of the Greek programme. The Taoiseach is attending this meeting. The meeting is expected to discuss further enhancement of the EFSF, including the issue of reducing the cost of the funding for all programme countries. The Taoiseach will take the opportunity to support any proposal for a reduction in EFSF pricing, as it is the Government's strong position that the margin being charged on loans for all programme countries from both the EFSM and the EFSF is excessive. The outcome of today's discussion will inform our approach on the pricing of all EU financial support, including our own programme.

Michael McGrath (Cork South Central, Fianna Fail)
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Question 107: To ask the Minister for Finance if he is seeking to have the maturities of the loans under the EU-IMF programme extended, in line with the intended additional flexibility in the EFSF as announced recently by the Eurogroup; and if he will make a statement on the matter. [22289/11]

Michael McGrath (Cork South Central, Fianna Fail)
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Question 134: To ask the Minister for Finance the elements of the planned enhanced flexibility in the EFSF that he intends to avail of; and if he will make a statement on the matter. [22409/11]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 107 and 134 together.

The Amendment to the EFSF Framework Agreement was signed by Euro Area Finance Ministers on July 13th 2011, subject to the completion of the necessary national parliamentary procedures of each Euro Area Member State. This amended Agreement was the outcome of months of negotiation and Member States have been requested to ratify the amended Agreement by the end of 2011 at the latest.

The main changes to the EFSF Framework agreement are to raise the maximum guarantee commitments to €780 billion, increase the effective lending capacity of the EFSF to €440 billion and broaden the scope of the EFSF whereby the EFSF may, on exceptional basis intervene in the primary debt market. Other changes include changes to the margin, pricing structure and the new advance margin, all of which are aim to improve the functioning of the EFSF and to facilitate reductions to the cost of borrowing from the EFSF.

On the 11th July, Euro Area Ministers discussed the deepening threat of contagion within the Euro Area and reaffirmed their absolute commitment to safeguard financial stability in the Euro Area. The statement issued by Eurogroup after the meeting noted that "To this end, Ministers stand ready to adopt further measures that will improve the euro area's systemic capacity to resist contagion risk, including enhancing the flexibility and the scope of the EFSF, lengthening the maturities of the loans and lowering the interest rates, including through a collateral arrangement where appropriate. Proposals to this effect will be presented to Ministers shortly".

The interest rate applying to the funds Ireland borrows from the EFSF remains of concern to Ireland. The Government will continue to seek a reduction in our interest rate margin and to avail of any further enhanced flexibility to the EFSF that will lower the cost of borrowing to Ireland and facilitate Ireland's return to the market at the earliest opportunity.

In relation to the additional flexibility proposed for the EFSF, last week's statement noted that proposals are to be presented to Ministers. There proposals are being considered at today's meeting of Euro Area Heads of State and Government. Decisions on how to avail of any additional flexibility within the EFSF must await final agreement and implementation of such measures.

Michael McGrath (Cork South Central, Fianna Fail)
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Question 108: To ask the Minister for Finance if he raised with the EU-ECB - IMF representatives, during their recent mission review of the programme of financial assistance, the issue of the use of any proceeds from the sale of non-strategic State assets; if they confirmed agreement to use any such proceeds for measures other than paying down the national debt; and if he will make a statement on the matter. [22290/11]

Michael Noonan (Limerick City, Fine Gael)
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The purpose of the quarterly review mission which was conducted by the EU / ECB / IMF representatives from 6th July to 14th July 2011 was to evaluate performance against the targets set for the third quarter of the Programme of Financial Support for Ireland including fiscal developments, the macroeconomic outlook, progress on commitments in the restructuring of the financial sector and structural reform. The EU-IMF Programme commitment on state assets relates to the fourth quarter of this year, and includes a provision that Government will discuss its plans with the EU Commission, the ECB and the IMF. Progress on this commitment was considered during the recent review, and the Government's commitments on asset disposals in the Programme for Government formed part of that discussion. It is expected that there will be further discussion with the Troika on asset disposals, including a further update at the next quarterly review, before decisions on asset disposals are finalised.