Thursday 22 February 2018

Finance denies payment due today

Donal O'Donovan

Donal O'Donovan

THE Department of Finance has insisted that no more cash is being paid to bondholders of Anglo Irish Bank – despite a stock exchange notice saying that interest on one of the bank's IOUs is due to be paid today.

An official notice released to the Irish Stock Exchange by Deutsch Bank said that three months of interest on a €750m Anglo Irish Bank floating rate note – a type of bond – is due to be paid today. Officials are understood to be mystified by the notice. It said the bond is due to be repaid in full in 2014.

The interest is at a rate of 1.16pc and is for the period between March 25, 2013 and June 25, 2013, according to the notice.

It is not clear from that market announcement how much of the €750m bond is still outstanding and therefore how much interest would fall due.

If cash is being paid out by Anglo Irish Bank the payment would have to be arranged by special liquidators Kieran Wallace and Eamonn Richardson of KPMG who declined to comment on the issue.

But a spokesman for the Department of Finance said it understands that no interest or capital is being repaid to Anglo bondholders because the bank is in liquidation.

The department ultimately controls the remains of the state- owned bank.

Irish Independent

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