Friday 31 October 2014

Deal done on debt despite ECB staying silent

Ailish O’Hora and Fiach Kelly

Published 07/02/2013 | 14:16

Taoiseach Enda Kenny with Finance Minister Michael Noonan as he addresses the Dail early today on legislation to facilitate liquidation of the IBRC, formerly Anglo Irish Bank

THE European Central Bank has agreed to a deal on the Anglo Irish Bank debt.

The deal centres on the Anglo Irish Bank promissory note or IOU – of which a €3.1bn repayment was due next month until the deal was agreed.

However, the principal €28bn debt will remain and will have to be repaid.

ECB President Mario Draghi would not comment directly on a deal at its monthly press conference in Frankfurt.

But is understood that cabinet meeting will be held later today and more details of the deal will be outlined after that.

Mr Draghi that the ECB government council ‘took note’ of Government proposals but he would not be drawn further on a deal.

The deal comes a day after Dublin rushed through emergency laws to liquidate the former Anglo Irish Bank.

It is also understood details of the deal were considered by the Government's economic war council this lunchtime.

The four-member Cabinet sub-committee comprises Taoiseach Enda Kenny, Tanaiste Eamon Gilmore, Finance Minister Michael Noonan and Public Expenditure Minister Brendan Howlin.

Mr Kenny took part in the meeting of the Economic Management via telephone from Brussels.

He is later due to chair a meeting of the European Council.

Earlier, the Government moved to reassure taxpayers that there has been a "positive" response by the ECB to its Anglo debt deal.

There was confusion after the European Central Bank president Mario Draghi said that its council did not take a decision on the Anglo debt deal proposed by the Government but had "taken note" of the "Irish operation".

But a Government source said that it had been a positive response by the ECB to the proposals it had tabled. These are understood to involve stretching out the repayment of the Anglo debt for up to 40 years.


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