AIB repayment to cut national debt

Finance Minister Michael Noonan has insisted the €1.7bn AIB is to return to the State will be used to reduce the national debt.

Mr Noonan made the comments after AIB received approval from the European Central Bank’s supervisory arm for its plan to begin repaying the money.

EU budgetary rules mean there is no other use that the money can be put to other than to pay down the debt, Mr Noonan said.