Debt deal would see IBRC liquidated if agreement secured from Frankfurt

He added that it was critically important that deposit account holders, mortgage account holders, and those indebted to IBRC understand that their situation following the liquidation should generally remain unchanged.

"If deposit account holders have any concerns they should make contact with the operators of the relevant schemes. Contact numbers are available on the Department of Finance website."

He emphasised that the steps being taken were entirely distinct from the performance or direction of the board or management of IBRC. "It is simply compelling in the larger public interest to now take this action and the Government has made its decision on that basis alone.

"I want to acknowledge, with much appreciation, the significant efforts the directors and staff of IBRC have made to the stabilisation of, and maintenance of value in, IBRC. I regret the abruptness of how this decision is communicated to the management and staff, but due to the scale, sensitivity and complexity of the economic issues involved, it was necessary in the public interest to keep the matter confidential until now."

Finalised agreement

Fianna Fáil finance spokesman Michael McGrath said he was prepared on behalf of his party to take in good faith the Minister's reassurance that not passing the Bill exposed IBRC, and by extension the State, to substantial risk.

"I have no objection in principle to IBRC being wound up with immediate effect," he added. "But I do want you to reassure me, my colleagues and everyone in this House that the national interest has been fully protected in respect of the decisions we are making here tonight."

Mr McGrath said he wanted to object in the strongest possible terms about the way the legislation had been handled.

He said many people would rejoice at the notion of IBRC being obliterated and taken off the banking landscape. "That is not the true effect of what you are proposing here tonight," he added. "This is a technical liquidation of IBRC which will involve, for example, all its assets being transferred to Nama."

Sinn Féin finance spokesman Pearse Doherty said the one clear thing from this morning's Dáil debate was the Government's determination to pay every last cent of the debt.

He criticised the Government over the loss of about 850 jobs at the bank, which he said employees heard about from the news agency Bloomberg.

"You're winding up the bank Minister but you're not winding up the debt", he told Mr Noonan. He described the rush to legislation as "an affront to democracy" and to the citizens of the State.