ECB statement welcome, but deal on banking debt essential – McGrath

Published on: 06 September 2012


Fianna Fáil Spokesperson on Finance Michael McGrath has welcomed the announcement by the European Central Bank (ECB) today that it is to resume its bond buying programme.  Deputy McGrath says this may potentially be of significant benefit to Ireland exiting its programme.

“Fianna Fáil has consistently called for the ECB to play a more active role in easing market tensions by using unlimited resources to essentially become a lender of last resort,” said Deputy McGrath.

“While the NTMA has made some progress recently in regaining market access, Ireland still faces a major challenge to successfully exit the existing programme and meet all of our funding requirements through borrowing on the markets. It is particularly welcome that the ECB may purchase bonds in respect of countries such as Ireland exiting formal programmes.

“I noted with some concern Mr. Draghi’s refusal to make any comment whatsoever on the promised deal on banking debt, which the Government is currently negotiating. It has been promised that a deal will be hammered out by the end of October, well in advance of December’s budget. In my view it is absolutely essential that the Government secures a comprehensive deal on banking debt that significantly eases the burden on ordinary tax payers of bailing out Irish banks. In addition to Mr. Draghi’s refusal to comment, I am concerned at recent reports about possible delays in the conclusion of these negotiations.”

Connect with us



News Categories