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A protest outside the former HQ of Anglo Irish Bank in Dublin this week. Sasko Lazarov/Photocall Ireland

Government to pay €1.25bn to Anglo bondholders today

The Taoiseach defended the payment in the Dáil yesterday as protests are set to take place in Dublin later today.

THE GOVERNMENT WILL pay €1.25 billion to senior, unsecured bondholders in the now defunct Anglo Irish Bank today as Taoiseach Enda Kenny said Ireland’s reputation would be damaged if it did not.

Despite protests from taxpayers as well as opposition parties and independent TDs in the Dáil yesterday, Kenny said: “We are not going to have the name ‘defaulter’ written across our foreheads.”

The payment will be met with protests by Sinn Féin outside the Dáil today while there are separate protests planned to take place outside the old Anglo – now the Irish Bank Resolution Corporation – headquarters on St Stephen’s Green in Dublin where there have already been demonstrations this week.

In the Dáil yesterday, Kenny and his government came under pressure to “stand up” to the European Central Bank (ECB) which has repeatedly warned of the consequences of not repaying the bond.

But Kenny responded: “I would much prefer to stand up here and say that we were in a position not to pay this. But there’s a difference between ‘won’t’ and ‘can’t’

We are not going to have the name ‘defaulter’ written across our foreheads. We will pay our way. We’ve never looked for a debt write down.

Last night, members of the Dáil technical group moved a private members’ motion calling on the government not to pay the €1.25 billion which is due.

The money is being paid because of the issuing of so-called promissory notes to Anglo by the State when it guaranteed the banks over three years ago. Effectively an IOU, it will cost the government over €3 billion plus interest every year for the next 15 years.

The State has already invested €30.6 billion in the bank by way of taxpayers money and when the promissory notes are paid up the total cost to the State of the toxic bank is estimated at over €47 billion.

The government is said to be attempting to secure a cheaper funding mechanism by way of the European Financial Stability Fund to retroactively pay for Ireland’s bank bailout at a lower interest rate.

This was the subject of a meeting between Finance Minister Michael Noonan and ECB president Mario Draghi in Frankfurt yesterday.

Column: Today, we’ll pay €1.25billion to bondholders. This must be stopped

ECB affirms: Investors won’t lend to you if you burn bondholders

Troika warned ‘a bomb will go off’ in Dublin unless bondholders repaid

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    Mute David Naylor
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    Jun 11th 2019, 1:01 PM

    Autoglass Windscreen Repair’s stock has risen significantly since..

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    Mute Chris Linehan
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    Jun 11th 2019, 4:16 PM

    @David Naylor: Ridiculously useless fact: over here they’re called Carglass. Same jingle and all.

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    Mute David Naylor
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    Jun 11th 2019, 5:22 PM

    @Chris Linehan: it’s a joke man

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    Mute Chris Linehan
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    Jun 11th 2019, 6:10 PM

    @David Naylor: Christ. My comment was as described and just a useless fact referencing the English in their Germany based branding and their German in their Ireland based branding. Now that you’ve gone and failed to recognise the lighthearted banter and then had to identify you’re comment as the obvious joke that it was, followed by me writing this comment, means between the two of us, we’ve now sucked all the craic out of this. Sound.

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    Mute William Tallon
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    Jun 11th 2019, 2:12 PM

    There’s no scientific evidence that this event has anything to do with global warming. Giant hailstones have been recorded throughout history when the climate was both warmer and colder than it is today. It’s nothing new. It’s weather. It neither proves nor disproves if global warming is happening. For example…

    ‘On July 12, 1984, a powerful hailstorm pummeled Munich. This ferocious hailstorm travelled at 60 to 70 km/h and left some 70,000 homes with roof damage; seriously dinged more than 200,000 automobiles and about 150 aircraft; and injured more than 400 people…’

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    Mute james boylan
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    Jun 11th 2019, 2:39 PM

    @William Tallon:
    This is true. One time I was in Bavaria about 30 years ago, the same thing had happened. I saw a good number of cars that had been badly damaged by hailstones.

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    Mute Dave O'Keeffe
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    Jun 11th 2019, 5:14 PM

    @William Tallon: nobody is saying these kind of weather events didn’t happen before, it’s the frequency that’s a concern

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    Mute FlopFlipU
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    Jun 11th 2019, 6:12 PM

    @Dave O’Keeffe: when did that happen in recent times apart from this occasion

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    Mute Sean
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    Jun 11th 2019, 7:26 PM

    @FlopFlipU: in 1984

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    Mute james boylan
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    Jun 11th 2019, 8:44 PM

    @FlopFlipU:
    These events happen every year around the world.

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    Mute ed w
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    Jun 11th 2019, 2:05 PM

    you know that’s how the day after tomorrow starts

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    Mute Mike Phelan
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    Jun 11th 2019, 1:23 PM

    Zerbrochene Windschutzscheibe, Überflutungen und Chaos!
    - exactly as you might exclaim at the broken windscreen yourself!

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    Mute Brian Flavin
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    Jun 11th 2019, 1:31 PM

    Same happen golf ball size hailstones in Australia last Christmas as mine friend pictures send me , blame global warming

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    Mute Sean
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    Jun 11th 2019, 7:26 PM

    @Brian Flavin: is this a telegram?

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    Mute The Mc
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    Jun 11th 2019, 1:38 PM

    The day after tomorrow. Global warming and no1 gives a dam..

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    Mute Marianne
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    Jun 11th 2019, 2:04 PM

    More like HELL.STONES..WAKE UP LEO CLIMATE CHANGE GETTING SERIOUS NOW

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    Mute brendan H
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    Jun 12th 2019, 3:28 AM

    @Marianne: Calm down its just weather. Its happened before lots of times in history.

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    Mute TamuMassif2019
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    Jun 12th 2019, 2:36 AM

    Hello, Climate Change… Will August bring them lightening strikes and September hurricanes…

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