Patrick Nulty (Dublin West, Labour)
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To ask the Minister for Finance if the refinancing of Anglo Irish/ Irish Bank Resolution Corporation bonds, constitutes monetary financing. [11828/13]

Michael Noonan (Limerick City, Fine Gael)
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I welcome the outcome of the ECB Governing Council meeting last month and I am not concerned that the transactions accompanying the liquidation of IBRC, involving the exchange of Promissory Notes for Government bonds, is in breach of any Articles of the Treaty on the Functioning of the European Union. The transaction was unanimously noted by the ECB Governing Council, as indicated by President Draghi on the 7th February. Furthermore on the 18th February President Draghi stated that the promissory note deal was a positive step for Ireland. The Central Bank of Ireland has carefully examined the legal and financial issues involved in the transactions and are satisfied that there is no such breach. The Irish Government fully understands the need for the ECB to ensure it is operating within its mandate. As outlined by the Central Bank of Ireland on the 7th of February, “the bonds will be placed in the Central Bank of Ireland’s trading portfolio and sold as soon as possible, provided that conditions of financial stability permit. The disposal strategy will of course maintain full compliance with the Treaty prohibition on monetary financing.”

Patrick Nulty (Dublin West, Labour)
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To ask the Minister for Finance his estimation of the nominal cost of the Anglo-Irish/Irish Bank Resolution Corporation bonds until 2055 compared with the nominal cost of the Anglo Irish promissory notes to that same date. [11829/13]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy will know, the Promissory Notes were replaced with a portfolio of long term non-amortising Irish Government bonds as a result of the transaction last month. The nominal value of the new bonds is €25bn which is equal to the nominal value of the IBRC Promissory Notes previously. With regard to an estimated comparison of the new arrangement with the Promissory Notes previously, any calculation of cost would be based on a number of assumptions, including what assumed interest would prevail and assumptions around future refinancing rates, all of which will depend upon the outcome of uncertain future events. These assumptions can have a material impact on the ultimate valuations and are subject to a wide range of possible outcomes. For that reason, I am not in a position to provide the Deputy with the estimates he is requesting. I can assure the Deputy that a key determinant of the value of the new arrangement was debt sustainability.

Patrick Nulty (Dublin West, Labour)
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To ask the Minister for Finance the conditions under which the Central Bank of Ireland would need to accelerate the sale of the Anglo Irish/Irish Bank Resolution Corporation bonds into the market in view of the fact that all the benefits hinge on the release of these bonds. [11830/13]

Michael Noonan (Limerick City, Fine Gael)
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I am advised that the Central Bank of Ireland will sell the bonds but only where such a sale is not disruptive to financial stability. The Central Bank have undertaken that a minimum of bonds will be sold in accordance with the following schedule: €0.5bn by the end of 2014, €0.5bn per annum from 2015 to 2018, €1bn per annum from 2019 to 2023 and €2bn per annum from 2024 onwards. The Central Bank of Ireland is responsible for financial stability considerations. I would expect the Central Bank to take full account of the health of the domestic and international banking system, the global economic situation and developments in markets when considering financial stability considerations in relation to the disposal of these Irish government bonds.