THE GOVERNMENT will not seek to emulate any concession the European Central Bank makes to Greece to reduce its national debt, Minister for Finance Michael Noonan said.
The Minister said any deal between the ECB and Greece may help him to advance his campaign to cut the cost of rescuing the former Anglo Irish Bank but that that there was no link between the Irish and Greek cases.
“There’s no connection between that and any possible Greek deal, so separate programmes for different countries.”
Mr Noonan was speaking in Brussels as he arrived for emergency talks with his euro zone counterparts on the second Greek bailout. “Certainly significant progress has been made but to my mind it’s too early to say that a deal has been done and concluded.”
However, Mr Noonan said any resolution of the Greek situation would help Ireland to return to private markets “as we expect to do” later this year.
On Today FM two days ago, the Minister referred to the possibility of an ECB “arrangement” for Greece and said “we’ll try to avail of that as well” if such a scheme went ahead.
Asked about such remarks, Mr Noonan said people had taken liberty to quote him as saying he might seek similar arrangements for Ireland as might be made for Greece but he insisted that was not what he said or meant. “What I did say yesterday was that we were negotiating an alternative to the promissory note and we will be watching very carefully the elements of the Greek programme to see if there was flexibility in the ECB.
“But under no circumstances was I saying that we’d be looking for something that Greece may get. I was simply saying that it might give us an opportunity to advance the separate negotiations that are ongoing on the promissory note.”
Under discussion in the Greek case is whether the ECB forgoes its profit on the Greek bonds it bought at knock-down prices when they mature.
“We have never requested that,” said Mr Noonan when asked whether he hoped the ECB would do the same in relation to the Irish bonds it holds. “I have no information whatsoever to suggest that the ECB are prepared to do that for Greece,” he added.
“We’re trying to enhance Ireland’s capacity to borrow in the markets in the future and consequently to repay our debts, but it’s really nothing to do with Greece and today will be about Greece.”
Referring to Europe’s bailout recipients, he said the situation of the “programme countries” was entirely different.
“We’re negotiating separately as I told you previously on an alternative to the promissory note that’s underpinning the debts in IBRC and that’s progressing,” he said.
“The authorities in Europe and ourselves are developing a common policy position.”
