The Government faces a crucial Dáil vote today as TDs debate the €85 billion EU/IMF bailout package.
The coalition is expected to carry the motion with the backing of three independent TDs, Kerry’s Jackie Healy-Rae, Tipperary North’s Michael Lowry and Wicklow’s Joe Behan.
Opposition parties are expected to vote against after the scheduled two-hour debate, with Fine Gael claiming it is a bad deal that needs to be renegotiated.
The Dáil will also debate the Credit Institutions Bill detailing new laws to oversee the multibillion-euro bailout and reduce the size of troubled finance houses.
Some €35 billion of the EU/IMF loan facility is earmarked to shore up the banks.
The new rules will impose so-called burden-sharing on global money markets, with some subordinated lenders forced to take a hit on loans made to Irish banks.
The legislation, published yesterday, said a special manager will be appointed to a bank “in limited and exceptional circumstances in order to achieve the objectives of the legislation”.
The Bill will also underpin Minister for Finance's Brian Lenihan’s pledge that state support will only be given to Allied Irish Banks if the controversial €40 million bankers’ bonuses are scrapped.
Labour yesterday suggested the payouts could end up being given to 90 AIB staff who have taken court action over the bonuses, claiming the Government may not be legally able to intervene.
The laws will also give legal effect to the effective wind-down of Anglo Irish Bank, expected to be early next year, and Irish Nationwide Building Society.
The Department of Finance hopes the Bill will be enacted by the Oireachtas by the end of the week.
Mr Lenihan said once the legislation is passed AIB will be given a cash injection by the end of the year.
Irish Times
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