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¤3.1bn IBRC bond 'to boost Ireland'

RATINGS agency Moody's has hailed the solution to a €3.1bn payment for Anglo Irish Bank as a positive for Ireland.

The National Treasury Management Agency has issued Irish Bank Resolution Corporation (formerly Anglo) with a sovereign bond worth €3.1bn.

Moody's said that the agreement to pay IBRC in a bond rather than cash was a boost for the country as it "reduces Ireland's gross borrowing requirements in 2012".

However, it said that it was a "credit negative" for the bank headed by Alan Dukes (above).

"The transaction is credit negative for IBRC because it will not directly receive the €3.1bn of cash," the agency said.