Minister for Finance Brian Lenihan met bank chief executives today amid speculation that the banks will be recapitalised by the Government, but he declined to be drawn on the likely outcome of the talks.
The move comes as the six guaranteed institutions prepared to submit revised business plans to the Financial Regulator today to show how they intend to reduce the risks facing them for the two-year duration of the scheme.
Speaking at Government Buildings as he published the Finance Bill, Mr Lenihan said: “Through a process of structured consultation, I met with the chairmen and chief executives of three banks today. The chairmen and chief executives of three other banks remain to be met,” he said.
“The public should be assured that the Government is determined to continue efforts to stabilise and reform the banking sector to ensure it provides credit for Irish small and medium-sized enterprises as well as consumers.”
He declined to comment further on the discussions or any likely outcomes.
Tánaiste Mary Coughlan earlier dismissed Opposition expectations that the Dáil may be recalled in coming days if any announcement on re-capitalisation of the banks was made.
Ms Coughlan tonight revealed in the Dáil that four Irish banks were in talks with the European Investment Bank.
Earlier, Labour leader Eamon Gilmore called for Mr Lenihan to come into the Dáil to brief TDs on the latest developments, including the meetings with the bankers.
He asked: “Are there any plans to recall the House to sit between now and next Tuesday?”
But Ms Coughlan, who was deputising for the Taoiseach, replied: “The meetings are confidential and there is no intention of discussing them. There is no intention of recalling the House, in my view.”
But Mr Gilmore added: “It is now our money that is supporting the banks so these private meetings are in the public interest.”
Shares in the main Irish banks tonight remained volatile on the Irish Stock Exchange.
Mr Lenihan met with the Financial Regulator and the Governor of the Central Bank in recent days.
The Taoiseach yesterday told that the Dáil that all options were being considered to stabilise the banking sector and make credit available to businesses.
He said a consultants’ report into the banks had found that they had sufficient capital to operate until 2011.
Mr Lenihan also said today it was too early to predict tax revenue for November, an important month for returns of the self-employed.