Wednesday 29 January 2020

Payment of Anglo IOU is challenged in High Court

Tim Healy and Laura Noonan

NEW Beginnings founder David Hall has brought a legal challenge against the Government's decision to issue €30bn of so-called promissory notes to the former Anglo Irish Bank, Irish Nationwide and EBS.

The case was laid before the High Court yesterday.

Hours later, it emerged that the United Left Alliance will today seek a High Court injunction to force the Government to stop paying off the 'pro-note'.

Both developments come as officials from the European Central Bank and the Department of Finance race against the clock to solve "technical issues" with the Government's proposal to side-step a €3.1bn payment due to the former Anglo Irish Bank on Saturday.

Central Bank Governor Patrick Honohan may be able to provide some insight into these efforts, as well as broader measures to restructure Ireland's bank debt, when he appears before a parliamentary committee on the issue this afternoon.

In his challenge yesterday, Mr Hall argued that the promissory notes were unlawful because the decision to issue them was never approved by the elected members of the Dail.

He also claims that the provisions of two acts which allowed the Government to issue the notes are unconstitutional.

Struggling

Mr Hall's proceedings against the Minister for Finance, the Attorney General, the Central Bank of Ireland, Irish Bank Resolution Corporation (formerly Anglo) and EBS stem from a 2010 decision to provide €30bn to Anglo and the other two institutions in the form of promissory notes, or IOUs.

Mr Hall, who's best known for founding a group that helps keep struggling families in their homes, claims the Dail was never consulted or had the right to vote or express an opinion on what he says was a huge promise.

Irish Independent

Also in Business