PDs angry as details of debt appear in paper

The Progressive Democrats have demanded an explanation from National Irish Bank about how details of the party's indebtedness became available to a Sunday newspaper. A party spokesman said the figures were "three years old and in banking terms, ancient history", but added it was "a disgrace that the confidential bank-client relationship should be breached in this way".

A senior PD figure contacted NIB yesterday after the report appeared in the Sunday Independent, and the bank has promised an inquiry into how the information leaked.

The party spokesman confirmed that, as reported, 25 members including TDs and senators had underwritten the bank overdraft with personal guarantees of £10,000 each.

However, he said, in the two years since the most recent documents quoted by the newspaper the party had reduced its debt from "about £400,000" to £250,000.

The report also quoted NIB officials expressing fear that there would be "logistical and political difficulties" in realising the personal securities.

"If they have a reluctance to call in securities, that's their business," the Progressive Democrats spokesman said.

Individuals named as guarantors include the party leader, Ms Mary Harney, as well as Ms Liz O'Donnell TD and Mr Des O'Malley TD.

Mr Michael McDowell, a former TD who has since left the party, is also a guarantor.

The report quoted documents saying the security was "adequate although cumbersome in nature". Concerns are also expressed that the 1997 general election would have "a disastrous impact on finances".

One memorandum identifies the bank's main concern as finding an "eventual exit mechanism, other than calling in our security".

The PD spokesman said fundraising events had contributed to the easing of the financial situation since then.

He added: "No political party in this country is in the black, but we have raised a considerable amount of money in the past two years and the accounts will be published as usual at the annual conference next weekend."

A spokesman for NIB said last night it was bank policy not to comment on customers' accounts.