Dáil to debate legislation for Greece loan within fortnight

LEGISLATION PROVIDING for the State's €1.3 billion loan to Greece is expected to be debated by the Dáil within the next two weeks, Taoiseach Brian Cowensaid.

Mr Cowen said that the process would be finalised tomorrow by the heads of European governments who would formally adopt the proposal agreed by the euro group ministers earlier this week.

“We will have the Bill before Government next week and in the House probably the following week,” he said. There would be a full debate on it.

The Taoiseach was responding to demands by Fine Gael leader Enda Kennyand Labour leader Eamon Gilmorefor a Dáil debate on the issue. He said people would know the nature of the financial support from the statements issued by finance ministers and from previous statements in April by the heads of government.

“It is on the request of the Greek government, and I think it is important that we emphasise that these are bilateral loans to be managed, with the issue pulled together by the commission using the European Central Bank as the paying agent,” he added.

Mr Cowen stressed that a strong conditionality was attached to the loan. It constituted an international agreement and one of the procedures required was to attach it to the schedule of any Bill being brought forward.

That was being finalised by the commission officials, based on discussions between the ECB, the commission, the IMF and the Greek government, he added.

Mr Kenny said the Taoiseach should give a guarantee that the State would get its €1.3 billion back. Mr Cowen said that people should be careful with the terminology used when discussing the matter. The bilateral loans would be repaid as the economic position in Greece improved. There would be quarterly evaluations and a review at the end of the year.

Mr Gilmore said he agreed that there was a national interest issue relating to the assistance being provided to Greece.

He said Ireland was not Greece and there were “invidious comparisons” being made which were not helpful to the State’s overall interest.