Michael Healy-Rae (Kerry South, Independent)
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49. To ask the Minister for Finance the prospects of getting a write down in the country's debt or if he will continue to try to get a write down on the debt; and if he will make a statement on the matter. [6058/14]

Michael Noonan (Limerick City, Fine Gael)
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As I have outlined in my replies to a number of previous Parliamentary Questions, the Euro-area Heads of State or Government (HoSG) agreed in June 2012 that "it is imperative to break the vicious circle between banks and sovereigns", and that when a Single Supervisory Mechanism, involving the ECB, is in place and operational, the European Stability Mechanism could recapitalize banks directly.

The Eurogroup meeting of euro area finance ministers on 20 June 2013 agreed on the main features of the European Stability Mechanism's Direct Recapitalisation Instrument or DRI. There is a specific provision included in those main features, which states that "The potential retroactive application of the instrument should be decided on a case-by-case basis and by mutual agreement." Therefore, the agreement, that we were active in negotiating, keeps open the possibility to apply to the European Stability Mechanism for a retrospective direct recapitalisation of the Irish banks, should we wish to avail of it. The DRI will come into effect when the Single Supervisory Mechanism is in place and operational. This is not expected to take place until late 2014. The Eurogroup has agreed that there will be strict eligibility criteria as well as a clear pecking order for the ESM DRI, so any possible application for a DRI will be determined on its own merits within the rules established for the DRI. The overall framework agreed in summer 2013 builds upon the earlier Euro area Heads of State or Government agreement secured on the 29 of June 2012, and is an important step in the Eurozone's efforts in this regard.

I would also point to a number of other positive developments during the lifetime of this Government to date that will serve to alleviate our debt burden including the reduction of the interest rates on our EU programme borrowings, the extension of the maximum average maturities of our EFSF and EFSM loans by seven years and the replacement of the Promissory Notes issued to the Irish Bank Resolution Corporation (IBRC) with a series of longer term, non-amortising floating rate Government bonds.

Finally, we will ensure that our case for retrospective direct recapitalisation is made at all levels as appropriate. I remain confident that the commitment made by the Euro-area Heads of State or Government in June 2012 to break the vicious circle between banks and sovereigns will be respected. It is very clear that there is still a lot of negotiation to be done on this aspect of the facility but the agreement now in place keeps the possibility to apply to the ESM for a retrospective direct recapitalisation of the Irish banks open for us, should we wish to avail of it.