Tommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

Question 57: To ask the Minister for Finance his plans to end the payment of promissory notes for Anglo Irish Bank in view of the detrimental impact that this will have on budget 2012 and in view of the significant gains that he has made recently in respect of the ESF; and if he will make a statement on the matter. [26471/11]

Tommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

Question 58: To ask the Minister for Finance if he has ordered an investigation into the manner in which the structure for the promissory note recapitalisation of Anglo Irish Bank was put in place and if that structure was adequately reported to Dáil Éireann and the Comptroller and Auditor General at the time in view of the profoundly onerous financial drain on the Irish State as a result; and if he will make a statement on the matter. [26472/11]

Tommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

Question 59: To ask the Minister for Finance if he will report on the progress of the ongoing negotiations between him and the troika on the payment of promissory notes for the Anglo Irish Bank recapitalisation; and if he will make a statement on the matter. [26473/11]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context

I propose to take Questions Nos. 57 to 59, inclusive, together.

Promissory notes were provided as consideration for the capital introduced by the State into Anglo. Under the terms of the Anglo (including INBS) promissory notes the State has an obligation to make annual repayments of €3.1 billion per annum. Furthermore the interest rates on the promissory notes, which were set by reference to government yields at the time of issue, are relatively high with a weighted interest rate, after the interest holiday, of circa 8%. The State has budgeted to meet both the interest and cash requirements.

It is not intended to end payment of the promissory notes to Anglo Irish Bank. The Government is committed to a restructuring plan to work out the assets of the bank over a 10 year period. It is important that this process is completed in an orderly manner and in the best interests of the State. In the absence of an alternative source of funding/capital the removal of the promissory notes would create serious problems for the institution and the system generally. That is not to say that other approaches to funding and meeting the bank's capital requirements will not be examined. As I have already indicated I proposed to President Trichet and Commissioner Rehn that our technical experts get together to examine the technical aspects of the promissory notes 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.

I have not ordered any investigation into the manner in which the promissory note were put in place. As the Deputy will be aware, the Thirtieth Amendment to the Constitution (Houses of the Oireachtas Inquiries) Bill, 2011 recently completed its passage through the Oireachtas. The referendum on the constitutional amendment to allow the Houses of the Oireachtas undertake full inquiries will take place on 27 October next. As my colleague, the Minister for Public Expenditure and Reform has made clear, subject to the constitutional amendment being approved by the electorate it will be a matter for the Houses of the Oireachtas to determine what matters are of general public importance and warrant the establishment of an Oireachtas inquiry under the detailed framework for Oireachtas inquiries which it is intended will be established under enabling legislation. This role is consistent with the proposed strengthening of the performance of our parliamentary system under the Programme for Government.