Róisín Shortall (Dublin North West, Social Democrats)
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62. To ask the Minister for Finance the details of the section 38 agencies which his Department has granted approval to use an asset as collateral under the terms of SI 120 of 2014 since the order came into operation; the specific asset used; and if he will make a statement on the matter. [29275/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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With specific regard to section 38 agencies, I am presuming the Deputy is referring to the agencies provided with funding under Section 38 of the Health Act, 2004. My Department has received no request for consent to be granted to a Section 38 body under the terms of SI 120 of 2014.

Statutory Instrument (SI) number 120 of 2014 refers to the General Government Secured Borrowings Order. The purpose of this Order is to prescribe the persons and bodies subject to the provisions of Section 67 of the Credit Institutions (Stabilisation) Act 2010, which provides that secured borrowing by the prescribed persons and bodies requires the consent of the Minister for Finance.

The bodies listed in the schedule of the SI are prescribed for the purposes of Section 67 of the Credit Institutions (Stabilisation) Act 2010 (No. 36 of 2010).

This requirement in law is that a local authority or a person or body (including Government Departments) in the Schedule shall not mortgage, pledge or encumber its own assets or revenues to secure any present or future indebtedness or any guarantee or indemnity given in respect of such indebtedness without the consent of the Minister for Finance.  This is required in order to comply with the loan agreements with the European Financial Stabilisation Mechanism (EFSM), the European Financial Stability Facility (EFSF) under the EU – IMF support programme, and with the UK, Sweden and Denmark under the Bilateral Loan agreements. The requirement remains in place for the duration of the loans, i.e. it did not expire at the end of the programme period.