Seamus Coffey: What makes us think that Spain will get a deal that we would want any part of ?
THE days after the referendum have been dominated by talk of a deal on bank debt for Ireland. Although the bank debt was not a live issue in the campaign, both the Taoiseach and Tánaiste were quick to introduce it in the aftermath. It still not clear what exactly is meant by a deal on bank debt.
Ireland has pumped €64 billion in recapitalisation funds into the banks. Of this, €20 billion came from the savings we had built up in the National Pension Reserve Fund during the good times. As things now stand there is around €25 billion of the Promissory Notes remaining which were provided to Anglo Irish Bank and the Irish Nationwide Building Society, which were subsequently merged to form the Irish Bank Resolution Corporation (IBRC).
The remainder of the money came from some of our other resources and loans agreed as part of the EU/IMF programme. The State has also received about €6 billion in return through sales, guarantee fees, dividends, Central Bank profits and other revenues.