Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
A SENIOR GOVERNMENT official has told an international newswire that a deal to allow Ireland change the terms on €31 billion of promissory notes could be struck by the end of this month.
The Dublin-based official told Dow Jones he is cautiously optimistic that the agreement will free the government from paying a €3.1 billion installment on promissory notes pledged to the now-defunct Anglo Irish Bank and Irish Nationwide Building Society.
The unnamed source also told Dow Jones journalist Eamon Quinn that the promissory note rescheduling would only be the first phase of a wider restructuring of Ireland’s debts. A “retro-financing” package could include a deal on debt – including tracker mortgages – held at the core banks of Bank of Ireland and AIB.
However, the Department of Finance were not able to confirm the comments. In a statement, a spokesperson said:
As highlighted by Minister Noonan last week the negotiations on the promissory notes are progressing. This is a medium term process and it is too early to speculate on the outcome of these negotiations at this point.
Although the money which was granted in emergency loans will be paid back, there could be a delay or changes to the interest rate which would reduce the repayment burden on Ireland. Approval is first needed by Ireland’s international partners, namely the European Central Bank and the International Monetary Fund.
The Government has been in talks with the Troika since last September to try and secure better terms to repay the massive costs incurred as a result of the crippling banking crisis.
On Friday, the IMF signalled that all parties were “working hard” to make a deal on the debt possible.
Last month, Communications Minister Pat Rabbitte told the Wall Street Journal that a restructuring of the IOUs would be agreed before the €3.1 billion repayment falls due on the last day of March.
The Minister told RTÉ this morning that talks on the issue are continuing but would not be drawn on a timeline. He said a positive outcome from the discussions would be good news for Ireland.
To embed this post, copy the code below on your site
The first installment at the end of this month must be stopped. Rescheduling and interest rate reduction should be a minimum demand and ideally we should be pushing for the Peter Mathews plan to write off the notes entirely.
You off on official line now, I think the whip will be coming your way
as great as this would be, the question then needs to be raised as to why we have been paying the way we are now!?!
there will be a well crafted political answere but the issue will still remain as to why have we wasted SO much money on something that is ‘defunct’.
youve got €150 billion debt. you agree to pay off €30 billion of it at a later date. explain to me where exactly this is ‘great’ ? its a crumb is what it is. a token.
Extending the payment time will just move the burden from me and my children to my grandchildren if my kids stay in this state. The notes have to be torn up.
You’re havin a laugh eh??
Sorry Kerry, meant for Robinson below.
I am not opposed to fiscal discipline, and as such am not ideologically opposed to voting yes to the upcoming referendum – but my support comes at a price and that is the reversal of the financial crime that has been inflicted on the Irish tax payer. No more – no less.
My vote is not for sale. Why should others tell us what we can and can’t borrow, this is dictated by the lenders.
Don’t forget, it was bank borrowing that fucked up this country, not government borrowing.
How convenient the government are now coming out saying that we mightn’t have to pay the €3.1 billion at the end of this month a few days after it was announced that we are to have a referendum on the ESM. And Kenny said he wouldn’t try to bribe the people, yeah right.
It’s called “bait and switch”.
It’s an incredibly common and effective political tool, and the public almost always falls for it for some reason.
Lies, threats and intimidation are a few other favourite tactics employed by our overlords, but they’d never admit it of course! Oh no!!
Its obvious that fine gael sent out this ‘unnamed source’ to spin away.
Why do people and particularly the Left want to either interfere or damage the negotiations that are going on in this matter behind closed doors.
It would be much wiser to let the Government get on with it and not get sidetracked by constant daily bickering from people who have no agenda that would benefit our economy.
Why do people who have most likely never met me keep on trying to put me in a pigeon hole and stick a label on me?
Why should I as an Irish national, paying my tax’s (excluding the house tax) and lucky enough to have a job not comment on what the government may or may not be doing allegedly on my behalf. Or are you suggesting we should leave it our betters to look after running this country?
You’re havin a laugh eh???
Getting on with it as in, quietly altering the ESM agreement to insert the Fiscal Compact clause? You’ll forgive me wonder whose benefit the Government’s agenda is serving. The Government agenda should be the benefit of the Irish people.
The govt approach to referendum and cost negotiations are classic YES MINISTER tactics which just might work..
These negotiations seem to be going on forever…with the news on same beng drip fed to us. Expect a huge announcement shortly before the referendum…is this why the dame & co are holding off announcing a date? Waiting for the news from the negotiations?
have your say