The emergency passage of legislation to underwrite billions of borrowings and deposits by Irish banks will be agreed in principle by the Dáil later tonight.
However, the legislation will not pass all stages in the Dáil, nor will it be debated by the Senate, until tomorrow, following the discovery of a flaw in the text.
Facing Opposition criticism after 9pm tonight, Taoiseach Brian Cowen said the partial passage of the legislation was necessary to send "a positive signal to the markets".
Earlier, there had been mounting concern about the legislation in the Houses of the Oireachtas as the time for the opening of the debate was put back four times.
It was first expected to be published at 4pm, then at 6pm, then at 7.30pm and then again at 9pm, but on each occasion the Government Chief Whip, Pat Carey had to ask for more time.
However, Mr Cowen said the changes that are necessary to be made to the legislation do not interfere with its broad thrust.
Following the dramatic 7am decision to underwrite all the borrowing, loans and deposits of Irish-regulated banks, Mr Cowen said it was important that the financial markets witness that it has been agreed in principle when they reopen in the morning.
Earlier, the Fine Gael leader, Enda Kenny said he had never seen "such scenes of absolute chaos" during his 30-odd years as a member of the Dáil.
However, he adopted a conciliatory tone after Mr Cowen said that the debate on the legislation should end once its Second Stage is completed tonight, leaving the other stages to be finished tomorrow.
Labour Party whip Emmet Stagg earlier said he had never previously witnessed the "sort of chaos" that he had seen on this issue today and he warned of the dangers of "rushed legislation". Sinn Féin Dáil leader Caomhghin Ó Caoláin urged the Taoiseach to delay the debate and to "clear the decks" tomorrow instead.
The legislation will allow the Minister for Finance to take shares in Irish banks and financial institutions – an element that was not included in the measure when it was first announced at 7am today.
Minister for Finance Brian Lenihan announced at 7am that the State would provide an unlimited two-year guarantee on all deposits and certain debt in six Irish banks in a move designed to “safeguard the Irish financial system”.
The move sent Irish bank stocks surging higher on the Dublin stock exchange today after record losses yesterday.
Officials have been working on the Financial Resolutions Bill since early this morning, shortly after the Government decided on taking unprecedented action to shore up six Irish banks. It followed a day of dramatic falls in the share prices of Irish banks yesterday, including falls of 42 per cent for Anglo Irish and of 38 per cent for Irish Life and Permanent.
The extraordinary nature of the action has resulted in a series of adjournments and delays in the Dail. The House rose at 4.30pm at the conclusion of Leaders Question and was expected to resume at 6pm to debate the legislation.
However, shortly after 6pm the Government Chief Whip Pat Carey requested a further adjournment until 7.30pm to allow for the final drafting and publication of the Bill.
“We are extremely anxious that this very complex legislation be brought to the House as soon as it is ready. And I am giving a commitment that that will happen,” he told the House.
“I am making no attempt to railroad the leg through unless there is a legal imperative that cannot be overcome. It is the wish of the Government to devote as much time as is necessary to have it debated in full,” he added.
Labour Party leader Eamon Gilmore said that his party had yet to see sight of the Bill, though initially it had been due to be distributed earlier in the afternoon. Mr Carey said that the Government was keen to afford ample time to debate the legislation. He said that copies of the Bill would be available at 6.30pm.
Fine Gael deputy leader Richard Bruton said that there was still no clarity from Government on the detail of the bank guarantee scheme, claiming that there were "glaring gaps" in the plans.
It is not clear at this stage if the legislation will pass all stages in the Dáil or Seanad tonight, or if it will be signed into law by President Mary McAleese tonight.
Earlier during Leaders' Question, Mr Cowen stood over the action that was taken, saying it was based on the advice available from the Central Bank and from regulatory authority.
"The security and stability of the financial sector is essential to the Irish economy,” said Mr Cowen.
"We provided a guarantee which will deal with the basic problem of the banks… that is access to liquidity and access to credit."
He said that the State guarantee was provided at a price. “It is not for free. The mechanism provides for a fee reflecting the commercial realities," he said.
Mr Kenny repeatedly asked the Taoiseach would the Government appoint personnel to the risk management committees of each of the six banks.
"What is the equity that the Irish taxpayer is going to get? No more dividends? No more trading in derivatives?
"We do not want the gains to be privatised and the losses to be socialised."
Mr Gilmore, speaking during the same debate, said that a decade of corporate greed, property speculation and many instances of irresponsible banking had come home to roost.
Speaking of the plan, he said: "I can see what's in it for the banks and what's in it for the banks' shareholders.
"I can see what's in it for the six chief executives who earned €13 million between them last year.
"I can't see what's in it for the taxpayer. We are proposing to hand over the deeds of the country to bail out the bank and what are we getting in return."
Mr Cowen responded that the first and most overriding priority was to have a stable financial system.
"What would happen if we woke up this morning to find a failed banking system?
"No money has been handed over. This guarantee enables them to get access to funds. The taking of equity will not provide the liquidity necessary."
Details of how the scheme was finalised have emerged during the course of the day. As the banks share prices plummeted yesterday, the Governor of the Central Bank and the Financial regulator were called into Government Buildings at 6pm where they met with the Taoiseach, Finance Minister Brian Lenihan, the Attorney General Paul Gallagher, their advisers and senior officials from the Departments of Finance and An Taoiseach.
Several scenarios were examined – one of which was the possible nationalisation of the most vulnerable bank or banks – but those involved quickly honed in on an action, in which the State would guarantee all deposits and loans for indigenous banks.
The chief executives of the two biggest banks, Bank of Ireland and AIB, arrived into Government buildings at 10pm and ongoing telephone contact was maintained with senior officials of the other relevant financial institutions.
At 3am, as the parties were near reaching a solution, all government minsters were contacted by telephone to gain their approval for the guarantee scheme. This was described as an “incorporeal” Cabinet meeting.
At 4.30am, the details were finalised and officials began preparing statements to be released to the markets and to the European Central Bank by 6.50am. After having had only two hours sleep, Minister for Finance Brian Lenihan was drive to RTÉ to be interviewed about the extraordinary development on Morning Ireland, before holding a press conference at 9.30am.
