Poll: Did the government get a good deal on the promissory notes?

The government argues that swapping the €3.06 billion annual payments for long-term bonds is the best we could have got, but others argue we’re still paying the debt. What do you think?

By Hugh O'Connell Friday 8 Feb 2013, 9:41 AM

Feb 8th 2013, 9:41 AM 11,752 Views 190 Comments

http://jrnl.ie/787739

Image: Sasko Lazarov/Photocall Ireland

Image: Sasko Lazarov/Photocall Ireland

YESTERDAY THE GOVERNMENT announced that a deal had been reached that would effectively swap the €3.06 billion annual promissory note payments for long-term government bonds paid over a longer period.

Lengthening the payments and reducing the interest rate on the debt created by the former Anglo Irish Bank and the issuing of the promissory notes, a form of IOU, means that Ireland cuts its borrowing by around €20 billion and has an extra €1 billion to play with for the next Budget.

It has been hailed as a significant step in the country’s recovery and the best that could have been got within the laws that govern the European Central Bank. But it still means that Ireland pays all of the debt and has been criticised by Sinn Féin and others as saddling future generations with the bank debt as the last promissory note payment will not be until 2053.

But what do you think? Did the government get a good deal on the promissory notes?

Poll Results:

No (2314)

Don't know (1224)

Yes (1016)

Read: Here’s how the IBRC deal takes €1bn off next year’s Budget

Read: Businesses and financial institutions hail promissory notes deal

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Hugh O'Connell

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Poll: Did the government get a good deal on the promissory notes?

The government argues that swapping the €3.06 billion annual payments for long-term bonds is the best we could have got, but others argue we’re still paying the debt. What do you think?

Read: Here’s how the IBRC deal takes €1bn off next year’s Budget