We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

Pat Rabbitte Julien Behal/PA Wire/Press Association Images
Promissory notes

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.

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’

Your Voice
Readers Comments
    Submit a report
    Please help us understand how this comment violates our community guidelines.
    Thank you for the feedback
    Your feedback has been sent to our team for review.