No comment from department on IBRC legislation

Updated: Monday, 18 Feb 2013 11:11

The Department of Finance has said it can not comment on reports that the legislation brought in to liquidate the Irish Bank Resolution Corporation will have to be changed.

The Sunday Business Post reported that the department was working on changes to legislation amid concerns about its legality.

The legislation put a stay on all legal actions taken against the bank, including that by the Quinn family.

The Quinns' case against IBRC claims they are not liable for €2.34bn in loans that they claim were unlawfully given to prop up the bank's share price.

Judge Peter Kelly of the Commercial Court is due to hear submissions from interested parties on 7 March.

A spokesman said the department could not comment as the matter was sub judice.

Seperately, Minister of State at the Department of Finance Brian Hayes has dismissed as "fanciful" reports that the promissory notes deal could unravel.

Speaking on RTÉ's The Week in Politics, he said the agreement would benefit Ireland both now and in the long-term.

Mr Hayes rebutted speculation that the agreement with the European Central Bank could be in jeopardy.

The former chief financial officer of Anglo Irish Bank, Maarten van Eden, told the Sunday Independent that the deal was in breach of the ECB's "fundamental rule against monetary financing".

European Central Bank President Mario Draghi said on Friday it would further examine the arrangement.

His comments followed those of the Bundesbank president Jens Weidmann who said it came very close to monetary financing.