Michael McGrath (Cork South Central, Fianna Fail)
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Question 82: To ask the Minister for Finance if the transfer of loss making tracker mortgages in State owned financial institutions to IBRC could give rise to a need for additional capital for IBRC in the future; and if he will make a statement on the matter. [17480/12]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy is aware the Government is committed to reviewing the approach to the Promissory Notes with a view to reducing the overall cost to the State. 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 review, the European authorities have opened a discussion on how best the Irish banking system and the Irish State can benefit from having further improvements to certain elements of the banking sector. The overall purpose would be to improve the position of the banks in which the State has a major investment. We must therefore consider the recent developments as an initial step in a project where, if we are successful, it will be in the medium term rather than immediately. As a result the Deputy will appreciate that it would not be appropriate at this stage in the process to comment on any specific implications, including any capital implications, for the institutions involved.