Saturday 20 January 2018

Michael Noonan says no deal on Anglo debt until at least the Autumn

A man reads a newspaper on the street reporting Sunday's general election as party leaders meet to attempt to form a coalition government on Monday. Photo: Getty Images
A man reads a newspaper on the street reporting Sunday's general election as party leaders meet to attempt to form a coalition government on Monday. Photo: Getty Images

Independent.ie reporters

FINANCE Minister Michael Noonan said today he does not expect a deal on the €30bn-plus Anglo Irish Bank debt until at least the Autumn.



And he was vague when asked about a recent report by RTE that there are new talks on a restructuring of the €67.5bn EU/IMF/ECB troika bailout loans.



“There has been lots of speculation and there may be a basis to it but there may not be.”



The European Commission yesterday denied that that new talks about restructuring were ongoing.



Mr Noonan said discussions with the troika on the so-called promissory note debt, or IOUs, in relation to Anglo, now IBRC, are continuing but he does not expect an immediate outcome.



“That it's a medium-term exercise,” he told reporters.



“I don't expect any final situation to evolve before the summer recess but we will be pushing very hard in the autumn.”



Meanwhile, its international lenders will renegotiate the programme on which its second financial bailout is based because circumstances have changed, a senior euro zone official said today.



Greece secured a second, €130bn bailout package in February from Europe and the International Monetary Fund, but an inconclusive general election in May and a return to the ballot box last Sunday delayed the implementation of the conditions attached to the bailout.



Greek parties are currently in talks to create a coalition government with a mandate to renegotiate the terms of the bailout, which has staved off national bankruptcy, but at the cost of deeply unpopular austerity measures.



The United States, the largest IMF member, said it supported discussions to review the Greek bailout programme, but German Chancellor Angela Merkel has said that loosening Greece's reform promises would be unacceptable.



"Anybody who would say that we need not, and cannot renegotiate the MoU (memo of understanding) is delusional, because he, or she, would be under the understanding that the whole programme, the whole process, has remained completely on track ever since the weeks before the Greek first election," the official said.



"Because the economic situation has changed, the situation of tax receipts has changed, the rhythm of implementation of the milestones has changed, the rhythm of privatisation has changed, if we were not to change the MoU, it does not work," he said.



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