This site uses cookies to improve your experience and to provide services and advertising. By continuing to browse, you agree to the use of cookies described in our Cookies Policy. You may change your settings at any time but this may impact on the functionality of the site. To learn more see our Cookies Policy.
OK
Dublin: 12 °C Wednesday 26 June, 2019
Advertisement

EU leaders may discuss improved Irish bailout - but only after bank deal is finalised

Once discussions on the promissory note issue has been concluded, Ireland could get a more lenient deal – but it may be some time.

Jean-Claude Juncker said Ireland's bailout terms could be improved after a deal on its promissory notes has been reached.
Jean-Claude Juncker said Ireland's bailout terms could be improved after a deal on its promissory notes has been reached.

THE HEAD of the group of Eurozone finance ministers has said that Ireland could be given more favourable terms on its EU-IMF bailout – though only after a deal is first reached on sharing its banking debts.

Eurogroup head Jean-Claude Juncker said Ireland had continued to make good progress under its lending deal, complementing the Irish authorities for the “steadfast implementation” of the bailout conditions and the recent moves to re-enter the markets.

“We will discuss possible improvements of the well-performing programme at one of our next meetings,” Juncker said at a press conference after a meeting of Eurozone finance ministers this morning.

He added, however, that this could be considered “once our technical discussions are concluded” – meaning any potential improvement would not be seen immediately, and could still be several months away.

The technical discussions are understood to be the talks about implementing the deal reached by ministers in June, when they agreed that the money going towards the bailout of Spain’s banks would be lent directly by the Eurozone bailout fund.

This deal is to be applied retrospectively in Ireland’s case – meaning some of the bailout funds given to Ireland for direct injection into the banking sector would be shaven off Ireland’s national debt.

Meanwhile, some of the money Ireland has put into its banking sector – including the promissory notes given to Anglo Irish Bank – could be recovered through selling those notes, or its shares in the banks, directly to the ESM.

Though a deadline of October had originally been set for this deal, the restructuring of Ireland’s debts is only likely to take case in parallel with Spain’s bailout – which the government in Madrid has been continually seeking to delay.

Read: ECB, IMF ‘in talks over €300bn Spanish bailout’ – report

More: Quest for bank debt deal to continue at Cyprus ministers’ meeting

  • Share on Facebook
  • Email this article
  •  

About the author:

Gavan Reilly

Read next:

COMMENTS (17)