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Ireland to raise EUR 3.0bn in state assets sales

22 February 2012, 13:55 CET
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(DUBLIN) - Ireland plans to raise up to 3.0 billion euros ($3.97 billion) in state assets sales as part of its huge EU-IMF bailout deal, Minister for Public Expenditure Brendan Howlin said on Wednesday.

The government will seek to privatise parts of the state gas and electricity companies and will also consider selling its 25-percent stake in airline Aer Lingus as well as part of the state-run forestry company.

The assets sale was agreed during talks with representatives of the international troika made up of the European Commission, the European Central Bank and the International Monetary Fund.

The cash raised will be used to pay down debt and invest in job creation and economic stimulus.

"The government has agreed with the troika the sale of state assets up to a value of 3.0 billion euros, based on the guiding principles that there will be no fire sales," Howlin said.

"I am pleased that following intense engagement the troika has agreed that one third of the proceeds can be used for re-investment in to our economy.

"This is a substantial change to the troika's previous position and will help promote recovery in the economy," Howlin said.

Ireland is attempting to restore its economy after it was forced to seek an 85-billion-euro ($112 billion) EU-IMF rescue package in November 2010 when massive debts left it on the brink of collapse.

A plan to sell a minority stake in the Electricity Supply Board (ESB) that had been previously signalled will not go ahead.

Instead, Howlin said that alternative asset disposal options were now being pursued, including some of ESB's non-strategic power generation capacity.

Also involved is gas group Bord Gais Eireann, but not including BGE's gas transmission or distribution systems or the two gas interconnectors, which will remain in state ownership.

Consideration will be given to the sale of some assets of forestry company Coillte, but the company's one-million acre land bank will be excluded.

Howlin added that the government will also mull the sale of its remaining share of Aer Lingus "when market conditions are favourable and at an acceptable price to government".

"These options will be considered in a manner that protects the economy and our key strategic assets."

He said: "It is intended that any issues arising will be addressed by the end of 2012 in order to facilitate transactions commencing in 2013."


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