Michael McCarthy (Cork South West, Labour)
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Question 122: To ask the Minister for Finance his views on the costs which are incurred by financial institutions under his control each time they issue correspondence to customers informing them of mortgage rate increases; the amount each institution spent in 2010 and 2011 on administration and postage of such letters in tabular form; and if he will make a statement on the matter. [4957/12]

Michael Noonan (Limerick City, Fine Gael)
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The administration expenses incurred by these financial institutions are a day-to-day operational matter for the board and management of those institutions and I have no function in the matter.

Terence Flanagan (Dublin North East, Fine Gael)
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Question 123: To ask the Minister for Finance his views on a matter regarding Anglo Irish Bank; and if he will make a statement on the matter. [4972/12]

Michael Noonan (Limerick City, Fine Gael)
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I have been informed by the Bank that it had a €1.25bn senior unsecured unguaranteed EMTN in issue, which matured on 25 January 2012. Securities such as this are freely tradeable once issued and therefore IBRC, the issuer, has no means of establishing the underlying ownership. These securities are publicly traded and dealt through market participants and settled by clearing house systems. An issuer does not have any access to the records of the clearing house. At maturity, the Bank will instruct its paying agent to transfer the funds due to the clearing house who will then distribute the funds to the holders of the securities as per their records.

Peter Mathews (Dublin South, Fine Gael)
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Question 124: To ask the Minister for Finance if he will confirm that the vast majority of the Irish Bank Resolution Corporation's liabilities are now accounted for by emergency liquidity assistance debts to the Central Bank of Ireland; if he will provide an estimate of the level of these debts; and if he will make a statement on the matter. [4990/12]

Michael Noonan (Limerick City, Fine Gael)
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I can confirm that IBRC receives the majority of its funding from the Central Bank of Ireland via its emergency liquidity facility. As the Deputy will be aware, the latest published figures are set out in the bank's Interim Report for the six months ended 30 June 2011 which can be found at the following link: http://www.ibrc.ie/About_us/Financial_information/Latest_interim_report/Interim_Report_2011.pdf.

Peter Mathews (Dublin South, Fine Gael)
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Question 125: To ask the Minister for Finance if he has requested that the Central Bank of Ireland allow the Irish Bank Resolution Corporation to delay beginning repayments of its emergency liquidity assistance debts until the country has emerged from its economic crisis; and if he will make a statement on the matter. [4991/12]

Michael Noonan (Limerick City, Fine Gael)
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I have not asked the Central Bank of Ireland to allow IBRC to delay repayments of the Emergency Liquidity Assistance (ELA) provided. The Deputy will be aware that while there is an implicit link between the current repayment schedule on the Promissory Note and ELA there is no specific repayment schedule, as such, in relation to ELA. Any discussions in relation to ELA would of necessity have to include the ECB. As I have indicated, I am committed to reviewing the approach to the Promissory notes with a view to reducing the overall cost to the State of correcting the banking system. The Troika have agreed to engage in a process with Irish Officials to produce a common paper which will consider all options for restructuring the notes in terms of the source of funding, the duration of the notes, the interest rate etc.

In tandem with this technical review I have commenced an intensive campaign at political level to garner support for an approach which is more beneficial to the Irish State. The Minister has met with Commissioner Rehn and Mario Draghi, President of the European Central Bank last week to progress the matter.

Given the nature of advocacy and the decision making process in the EU, I would not expect this matter to be concluded in the short term.

Peter Mathews (Dublin South, Fine Gael)
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Question 126: To ask the Minister for Finance, on the understanding, based on Article 14.4 of the ECB statute, that deferral of emergency liquidity assistance repayments can be blocked by a two thirds vote of the ECB Governing Council, if he has asked for ECB President Draghi's support in approving such a proposal; and if he will make a statement on the matter. [4992/12]

Michael Noonan (Limerick City, Fine Gael)
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The Government is currently in technical discussions with its European partners about restructuring the promissory notes held by IBRC. These promissory notes are funded by exceptional 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 any restructuring of 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.

Peter Mathews (Dublin South, Fine Gael)
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Question 127: To ask the Minister for Finance if he will provide an explanation of the Central Bank of Ireland's policy regarding its plans for repayment of emergency liquidity assistance debts by the IBRC; if this money is used to purchase assets for the bank, profits from which can be returned to the Exchequer, or if this money is used to write down the bank's liabilities, effectively destroying the money created when the ELA loans were made; and if he will make a statement on the matter. [4993/12]

Michael Noonan (Limerick City, Fine Gael)
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Exceptional Liquidity Assistance or ELA is one of the ways that the Central Bank has responded to the financial crisis. This is distinct and separate from regular funding operations carried out for monetary policy implementation purposes through the ECB. A loan provided to a credit institution under ELA is granted against suitable collateral, where suitability is in line with unpublished criteria defined by the Central Bank. As with procedures for ECB eligible collateral, appropriate haircuts/discounts are applied with a view to ensuring that the Central Bank would not suffer any loss in the event of default on the loan assistance. Any ELA provided by a central bank is funded through Intra-Eurosystem liabilities. As such, any repayments of ELA is used to reduce this liability on the Central Bank's balance sheet.