Pearse Doherty (Donegal South West, Sinn Fein)
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Question 142: To ask the Minister for Finance the total contribution of the State to the European Stability Mechanism; the dates on which payments will be made; the amounts to be paid on each of these dates; and if he will make a statement on the matter. [22782/12]

Michael Noonan (Limerick City, Fine Gael)
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The capital structure of the European Stability Mechanism (ESM) is set out in the ESM Treaty which was signed by Euro Area Member States on 2 February 2012. To obtain the highest possible credit rating, the capital structure of the ESM will have a total subscribed capital of €700bn. Of this amount, €80bn will be in the form of paid-in capital by the Euro Area Member States, paid in five equal instalments from July 2012. The balance of €620bn will be callable capital. The contribution key for each Member State is set out in Annex 1 to the draft Treaty and is based on the ECB capital contribution key. For Ireland the key is 1.592% of the total paid and committed capital. Ireland's share of the €80bn in paid-in capital, based on our contribution key, will be just above €1.27bn paid in five equal instalments of €254m. Unlike the EFSF, there is no "stepping out facility" in the ESM when members enter a programme of support. Therefore, Ireland will have to pay its share of the paid-in capital. The ESM is being established as an International Financial Institution and on that basis Ireland's contribution will be treated as a financial transaction. This means that while it will impact on Ireland's Exchequer Borrowing Requirement, it will not impact on its General Government Deficit. Ireland's share of the €620bn callable capital is based on the same key, i.e. 1.592% of €620bn making the callable capital €9.87bn.

Following decision of the Eurogroup on 30 March 2012, the paid-in capital will be made available more quickly than initially foreseen in the original ESM Treaty. Two tranches of capital will be paid in 2012, a first one in July, a second one by October. Another two tranches will be paid in 2013 and a final tranche in the first half of 2014.