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Dublin: 15 °C Monday 20 May, 2013

Rabbitte tells WSJ: Deal to reduce Anglo burden ‘in the next few weeks’

The government is set to pay €3.1 billion in promissory notes to Anglo Irish at the end of next month but a senior government minister reckons we won’t have to do it.

Pat Rabbitte
Pat Rabbitte
Image: Julien Behal/PA Wire/Press Association Images

COMMUNICATIONS MINISTER PAT Rabbitte has said that there will be a deal to lessen the burden on Ireland paying down €31 billion in promissory notes to the now-defunct Anglo Irish Bank “in the next few weeks”.

In an interview with the Dow Jones Newswires for the Wall Street Journal Rabbitte has said that a restructuring of the promissory notes or IOUs would be agreed with bailout lenders before the next repayment of €3.1 billion falls due on 31 March.

The government controversially repaid €1.25 billion to senior, unsecured bondholders in the now-defunct Anglo Irish Bank last month despite calls on it to default on the payment.

The money is being paid because of the issuing of so-called promissory notes to Anglo – now known as the Irish Bank Resolution Corporation – by the State when it took over the running of the bank along with Irish Nationwide Building Society in 2009.

Effectively an IOU, it will cost the government over €3.1 billion every year for the next 15 years. Finance Minister Michael Noonan has been working to secure a deal that would lower the cost of the bank guarantee and spread it over a longer period.

Rabbittee said that the issue of restructuring is “absolute critical” and said: “There are reasons to be optimistic that the Irish government does not have to pump in another €3.1 billion.”

For more, read Eamon Quinn’s interview on the Wall Street Journal website >

Kenny says ‘we’ll pay our dues’ a year after Varadkar said ‘not another cent’

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Comments (34 Comments)

  • 3.1 billion every year for fifteen years seems like quite a lot of money. Let’s not do it.

    Reply
  • This is classic stuff- very funny.

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  • Reasons to be optimistic. Lol. Were screwed if we pay this every year.

    Reply
  • I’m just biding my time until March 31st and see just how much we’ll hand over, after all Mr Kenny said we’d pay our dues and not look for a write down on anything…..and he’s also an honest man :/

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  • Should have been done a long time ago. Fine Gael/labour have had nearly a year in Government with their greatest success being the fulfilment of empty promises!

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  • ”ANGLO and IBRC”

    ”Closing Down Hundreds Of Irish Businesses Each And Every Week”

    (All with the help of our Government)

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  • Why is he telling some bloody journalist in America this instead of us ? Mushroom management regarding the Irish electorate.

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    • I was thinking the same thing myself . Every time they go some where they tell them before they tell us ….
      I am sick of it . I am sick of feeling let down by them . We deserve better but I have given up of expecting better .

      Reply
  • Anglo and the Government are one and the same. Just look at the scam they pulled off re. Quinn Group which will not see the return of one cent to the taxpayer and will instead cost us billions.

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    • Not only is Quinn costing the economy billions from its debt to the former Anglo (now IBRC) but also from Quinn’s operation of a cartel in the cement industry (along with CRH). Prices of cement in Ireland are currently over €100 per tonne. The same cement is being exported to Britain for €50 per tonne.

      In 2004 Dr John Fingleton, as head of Competition Authority stated anti-competitive practices were costing the Irish economy circa €4 billion a year. Thats approximately €2400 per household. It’s really puts the household charge into perspective!

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    • The Government is now operating a cartel through Anglo’s ownership of Quinn Cement. So the Government are ripping off consumers and taxpayers with both hands. People need to be made aware of this. Why is the Competition Authority not doing anything?

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    • The Competition Authority are being starved of funds by Minister Richard Bruton so they cant investigate anything. They might as well not be there. It must be noted that Richard Bruton is a former employee of and current shareholder in CRH. Complete conflict of interest! This is political / regulatory capture and it’s costing the economy billions of euros as is evidenced from above!

      Reply
  • Why can’t Rabbit tell the Irish People first and the WSJ 2nd?

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  • John 10/02/12 #

    Deal to reduce Anglo burden ‘in the next few weeks’, but only if there is a yes vote in the coming referendum.

    Reply
  • Professional help?what do you personally think about men being treated like shit eileen,maybe you need some help yourself Eileen :)

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    • Declan .
      You seriously need to f**k off and leave me alone .
      I do not care about you or what you think of women or of me
      .If you have something to say ,I wish you would come
      out and say it before you choke on your own bitterness.

      Reply
  • Is Pat Rabbitte Joking?
    Why not slit our veins and bleed us dry ?
    1) Close down all the Maternity hospitals / units(Women have been having babies for millennia and surely know how to do it by now )
    2) Close every 2nd school in the country and kids can cram into classrooms like we used to , saves on heating bills too that way.
    3) Revert to pre1974 and not allow any married women to work
    4) Close the colleges and universities
    5) encourage emmigration as a lifestyle choice , hell ! issue grants for it !

    Reply
  • Dept. Of Finance must be cringing…this is the same guy who said there wasn’t any oil off our coasts…like all in this government….DON’T BELIEVE THEM!,,

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  • The lets find something negative in everything brigade are weak today. Maybe they are still in bed.

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    • So Donal tell us all what is so positive about all of this in your own opinion ?

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    • It could mean a €2Bn or more a year not being spent on this s***e.

      Something like 2-3% interest rate and spread it over 30 or more years would mean some serious savings and a lot less pain.

      FF lumbered us with an 8% interest rate on this.

      (For the sake of not having a meaningless argument, let’s just assume that not paying it back is not one of the options open to us.)

      Reply
    • Sorry Donal . I can not see any other option .
      We need employment growth .We need to trust our politicians and as long as they keep selling us all out
      we will have nothing . They need to stand up for us .

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    • Eileen, to get employment growth we need to stay at the big boys table. Defaulting removes us from it.

      Look at horror of what is happening to Greece and their managed default (this is what you are asking for). Despite that, they are doing everything they can to avoid an unmanaged default because they know the even more horrific consequences that will bring.

      I believe our politicians are standing up for us. They are getting results bit by bit. It may not be at the pace and by the route that you would like but it is happening.

      This is not to say that I am not concerned at their incompetence in managing public sector reform (e.g. the recent retirements BS, the glacial pace of Croke Park implementation).

      Reply
    • Donal
      I respect anyone’s opinion when it is given fairly and with out malice ,
      Can I ask you then Why is it you think that our politicians are feeding us information
      through foreign media. Why are so many people angry.
      For myself , I am so angry, so frustrated at the lack of explanations coming from the people we elected as our government . They are answerable to us not to other countries. .I am seriously disheartened . I can not accept that we are in such a serious situation all because of greed …
      Tell me where do you find the ability to trust these guys , because I can not .

      Reply
    • Eileen, I don’t think the fact that this story came to us the way it did is an issue whatsoever. Media is media. Are you saying you wouldn’t be peed off if he had revealed this in response to a question from an IT journalist?

      You say you are so angry, so frustrated at the lack of explanations coming from the people we elected as our government – are you telling me you voted for one of the Government parties? Of course, even if you didn’t vote for them, you are perfectly entitled to expect everything from the Government, just wondering at the phrase.

      I think they have been explaining a tough situation the best they can. The problem for a lot of people, I suspect, is not how they are saying things but the truth of what they are saying. It’s all very well to be angry about how we got here but being angry at the solutions is not helpful. in my book.

      I’m not saying for 100% that it will all work out but I am saying that we should give it our best shot according to the rules. That way if it works out, we will be in a far better place. And if it doesn’t work out, well then we won’t be any worse off than if we defaulted now. We are all in anyway so we might as well stay in.

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    • Yes .I voted for them ,The sorriest thing I ever did . I even defended them saying that hard decisions must be made . But to be ignored and treated the way we are being treated in our own country by our own government is unacceptable .
      We will default . There is no surer thing . And I am not usually pessimistic. But this has absolutely changed me for the worse.
      In the meantime The EU / Troika/ banks have paid unsecured bondholders …. While our hospitals, schools, garda station s, airports, army barracks are all closing down OR cutting back on services. Yes I feel angry .
      Thanks for your response . There is after all nothing you and I can do if we oppose each other …

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    • Indeed Eileen, a bit of national unity would be a good thing.

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    • Donal
      ”I believe our politicians are standing up for us. They are getting results bit by bit. It may not be at the pace and by the route that you would like but it is happening.”
      Do you still believe this ?

      Donal this morning in TheJourna.ie I read
      ”TÁNAISTE EAMON GILMORE has acknowledged that Ireland did actively seek to have the new eurozone ‘fiscal compact’ treaty amended to minimise the need for a Constitutional referendum.”
      Yes a little unity would go a long way

      Reply
    • As it happens I think avoiding a referendum is crucial. It would turn into a circus that had nothing to do with what we were actually voting on. People wanting to ‘send a message’ etc.

      Reply
    • Donal
      That is democracy ,every vote sends a message to somebody !!

      Reply
  • I mentioned Maternity hospitals, and surely you even know that married women prior to 1974 were not permitted to work… and the word women ..twice.
    I was suggesting some money saving ideas . That is all . And if you do not recognise humor or sarcasm then There is no point in discussing anything.

    I remember you now … You are the guy who was upset about his friend who was suffering domestic violence at the hands of his wife on a thread that was completely irrelevant .
    How are you ….Sorry how is he doing now ? I hope he got help and took my advice that violence should never be accepted .

    I believe this thread is about ” Rabbitte tells WSJ: Deal to reduce Anglo burden ‘in the next few weeks’’
    I could just as easily said something about Pat serving Rabbit stew ….It is called humor .
    You take care now

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    • Here is an idea Eileen how about all the Men in ireland stay at home and mind the kids and all the women go to work or would that be irrelevant too!! Yeah unfortunately they divorced and he left his job due to depression so the court awarded full custody to the woman with the kids and the bloke has to pay maintenence,I suppose that’s just the way it will be I’m the irish judicial system anyway back to the topic its good that this toxic debt can be reduced,as for all political parties and politicians they are all the same I couldn’t give a fuck about any of them,nobody will help anybody you have to protect ypurself and your loved ones by making your own decisions in life,life is too short now ill finish trolling byeeeeeeeeee

      Reply
    • Declan
      I think maybe you need some professional help. I will let you decide what type .

      Reply

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