Written answers

Tuesday, 26 November 2013

Department of Finance

EU-IMF Programme of Support

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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147. To ask the Minister for Finance further to the statement by the Taoiseach to Dáil Éireann in relation to the upcoming exit of Ireland from the EU-IMF assistance programme on 14 November 2013, if he will elaborate on the discussions that took place between Chancellor Angela Merkel to arrive at the scenario whereby the German government has asked KfW, the German development bank, to work with the German and Irish authorities to deliver on improving funding mechanisms to support a productive Irish economy at the earliest possible date. [50367/13]

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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171. To ask the Minister for Finance further to the Taoiseach's statement to Dáil Éireann in relation to the upcoming exit of Ireland from the EU-IMF assistance programme on Thursday, 14 November 2013, if he will provide details on any funding mechanisms that might be availed of in the Irish economy, for example, by small and medium sized business, in the form of development loans that may be made available by the German development bank, KfW. [50368/13]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 147 and 171 together.

As the Deputy will be aware, the Taoiseach mentioned in this House that he had held discussions with Chancellor Merkel. Germany is keen to help and specifically to find ways to reinforce Ireland’s economic recovery by improving funding mechanisms for the real economy, including access to finance for Irish SMEs. The German Government has asked KfW, the German development bank, to work with the German and Irish authorities swiftly, in order to deliver on this initiative at the earliest possible date.

Officials of my Department have already exchanged working papers on this subject with KfW and the German Ministry of Finance. Discussions with the German Ministry were held in Berlin last week and there was a meeting between Department of Finance officials and KfW personnel in Frankfurt yesterday. We will be moving forward with this work with KfW and other key stakeholders over the coming weeks both here and abroad.

The Government’s intention is to ensure with the support of Chancellor Merkel that an effective and successful initiative emerges from the process. We will therefore be discussing any and all approaches that meet the strategic objectives of both States and ultimately facilitate lending to the real economy, in particular to SMEs in Ireland. Although the precise form and delivery mechanism for any assistance has yet to be agreed, discussion with German colleagues will consider appropriate options for funding the recovery of the Irish Economy in the course of our work with KfW and the German Government over the coming weeks.

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