Michael McGrath (Cork South Central, Fianna Fail)
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Question 80: To ask the Minister for Finance if it is his policy that the Central Bank of Ireland should not incur a loss on the provision of emergency liquidity assistance to support Irish credit institutions; if he has committed to provide for the Central Bank to receive payment to make good any shortfall that may arise on the provision of such assistance; and if he will make a statement on the matter. [6143/12]

Michael Noonan (Limerick City, Fine Gael)
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One of the functions of the Central Bank of Ireland, similar to other central banks, is to grant Exceptional Liquidity Assistance to a credit institution when this is deemed necessary for financial stability purposes. These amounts are published monthly. 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under Exceptional Liquidity Assistance is granted against suitable collateral, where suitability is in line with unpublished criteria defined by the Central Bank.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 by the Central Bank to ensure that it does not suffer any loss in the event of default on the loan assistance. I have provided formal comfort to the Central Bank such that any shortfall on the liquidation of this collateral will be made good.