Tom Fleming (Kerry South, Independent)
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Question 115: To ask the Minister for Finance if the terms of reference being used by the troika as it works towards producing a common paper on a possible alternative to the IBRC promissory notes, include the possibility of proposing some form of new substitute financial instruments as opposed to merely adjusting the interest rate and/or the duration of repayment of the existing promissory notes; and if he will make a statement on the matter. [4874/12]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy is aware, the Government is currently in detailed discussions with its European partners about restructuring the promissory notes held by IBRC. These promissory notes are funded by emergency liquidity assistance, or ELA, provided by the Central Bank of Ireland (CBI). This ELA is itself funded by the CBI through Intra-Eurosystem liabilities and any repayments of ELA are used to reduce this liability on the Central Bank's balance sheet. If the discussions about restructuring the promissory notes are successful, it could result in the replacement of these notes with an alternative instrument and a change in the repayment profile of the associated funding. The government's approach in this matter is to vigorously pursue a resolution that is in Ireland's interests but to do so with the agreement of the ECB, the IMF and EC.