Noonan announces deal on Promissory Note

This is a photograph of the Dáil chamber, Lein...

This is a photograph of the Dáil chamber, Leinster House, Kildare Street, Dublin Ireland. It is the chamber and seat of Irish Government where Irish parliamentarians (TD's) govern Ireland. The photograph was taken on 28th of June, 2008 at the inaugural opening of the Houses of the Oireachtas (parliament) for a 'family fun day'. This we were told (by the guides) was the first time that photography was permitted inside the Dáil chamber. (Photo credit: Wikipedia)

Tonight speaking in Dáil Eireann, Finance Minister Michael Noonan, announced that a deal had been brokered on the Anglo Promissory Note which is due to be repaid. An excerpt from his speech from politics.ie

Firstly, there is an issue that I wish to bring to the attention of the house as the Government has always committed that we would inform the Dáil about any development concerning the payment of the promissory note at the end of this month.

In more recent months, we have been involved in technical discussions on reducing the burden of debt associated with the recapitalization of the banks. In particular our focus has been on the Promissory note arrangement that was put in place to fund the Irish Bank Resolution Corporation – formerly Anglo Irish Bank and Irish Nationwide. This is an arrangement, which requires the State to make cash payments of €3.06 billion each year to IBRC. There have been some developments on this issue during the day.

The discussions with the European authorities on the general issue continue but we are now negotiating with the EU authorities, and principally with the ECB, on the basis that the €3.06 billion cash installment due from the Minister to IBRC on 31 March 2012 under the terms of the IBRC promissory note could be settled by the delivery of a long term Irish Government Bond. The details of the arrangement have still to be worked out.

More as details become clear.

2 thoughts on “Noonan announces deal on Promissory Note

  1. Jerry Melinn on

    Does issuing Govt. Bonds, as distinct from Promissory Notes, establish the liability for the Anglo debt with the taxpayer ?

    • Well we were liable for the promissory note anyway and this is a swap on money the Government were going to have to pay out anyway!

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