Michael McGrath (Cork South Central, Fianna Fail)
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Question 73: To ask the Minister for Finance if he will provide details of the meeting he held with the head of the European Central Bank, Mr. Jean Claude Trichet, in Poland on 17 September 2011; the matters discussed affecting Ireland; and if he will make a statement on the matter. [25503/11]

Michael Noonan (Limerick City, Fine Gael)
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I had the opportunity to meet with President Trichet on the margins of the Ecofin meeting in Poland on Saturday, 17th September. I raised with him the issue of the burden sharing with the senior unguaranteed bondholders in Anglo Irish Bank. This was unresolved business and I pressed the case for such burden sharing. However, President Trichet was of the strong view that such action was not in the interests of Ireland or the Euro Area, particularly given the challenges facing the euro area at this time and the contagion that we witnessed recently that has affected Italy and Spain. Commissioner Rehn also made the same point on this issue when I met him at a separate meeting on Saturday.

President Trichet was very complimentary of the progress being made by Ireland and he noted the narrowing of bond spreads that had taken place, which he would not wish to see put at risk. I noted the points he made and I said I would report back to Government on the discussion.

I also mentioned to President Trichet, and in the separate meeting with Commissioner Rehn, the situation in relation to the Promissory Notes. These Promissory Notes are amounts due from the State to Anglo Irish Bank as consideration for the capital provided in 2010. While the State has budgeted to meet both the interest and cash requirements I am eager to have the Promissory Notes examined to see if they can be re-engineered in a better way for the State, for example, by lengthening their maturity and reducing their interest rate on them. This re-engineering would have to be completed in a manner which does not impact on the capital position of Anglo. This may or may not be feasible. I proposed that our experts get together to examine the technical aspects and the implications of any potential changes. They were agreeable to this on the basis that there is clearly no commitment on their part upfront. We are now proceeding on that basis.