Gerry Adams (Louth, Sinn Fein)
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77. To ask the Minister for Finance if he will provide an update in the possible recapitalisation of banks here through the ESM. [23943/13]

Michael Noonan (Limerick City, Fine Gael)
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I wish to inform the deputy that work continues at a technical level to complete the design of the ESM’s Direct Banking Recapitalisation instrument before the end of June, as has previously been agreed at political level. Once the final version has been agreed by Ministers the instrument will need to pass national procedures which would take place during the second half of the year before it can become operational. Ireland continues to engage and put the case that retrospective recaps should be facilitated.

As the Deputy will be aware, the European Council in October 2012 reaffirmed that the “the Eurogroup will draw up the exact operational criteria that will guide direct bank recapitalisations by the European Stability Mechanism (ESM), in full respect of the 29 June 2012 euro area Summit statement. It is imperative to break the vicious circle between banks and sovereigns”.