When Is A Deal Not A Deal?


“However, effectively what is happening is that the Irish government are providing the IBRC with a long-term bond, the IBRC are exchanging that bond with Bank of Ireland for one year in return for €3.1 billion in cash and this cash will be used to repay the IBRC’s Emergency Liquidity Assistance (ELA) loans.

What has been achieved? In essence, the government has delayed paying out the cash for this year’s €3.1 billion but the IBRC (and hence the state) now has to repay Bank of Ireland this amount next year. This is effectively a one-year deferral of this payment, which is far worse than the long-term deferral of the payment that I had already described on Saturday as “fairly meaningless”.

Because the ECB have fully achieved their goal — getting a full €3.1 billion ELA repayment — calling this “a deal” with the ECB is hardly appropriate. Rather, it represents an arrangement with a privately-owned Irish bank that maintains the appearance of some sort of deal having been agreed with the ECB.”


Promissory Note “Deal” Fails to Meet Low Expectations (Karl Whelan)

Can We Make Irish Promissory Notes A Bit More Bonkers? Yes We Can (Financial Times, Alphaville Blog)

Banana Republic Status Comes A Step Closer With Anglo Promissory Note Deal (Nama Wine Lake)

(Laura Hutton/Photocall Ireland)



26 thoughts on “When Is A Deal Not A Deal?

  1. Barbara

    The time for excuses has gone now. We are in deep shit because of these banks and nobody is being held accountable. Rather, we are advised by the media of the amount of Bertie’s pension which just inflames the population’s anger. These people need to be made accountable – if someone were fiddling their social welfare money, they’d soon be in court and banged to rights (as it should be), but it seems the greasier you are and the more in the public eye, you can get away with daylight robbery – which, last time I looked, was a crime.

  2. Stephen

    These guys need to get some help on the creative accounting side of things. It is not about confusing people to think that it is gone…. that is what the NAMAd guys and certain former health insurance and concrete baron does. Our government should be bigger than that BS.

  3. Zuppy International

    “If the Taoiseach’s Government knew Anglo Irish Bank was insolvent and asked the Irish taxpayers to bail it out and to pay the cost we are now paying for it, that was and is economic treason. I stand over that.”

    Deputy Eamon Gilmore, 12 January 2011

  4. orieldude

    So the ECB didn’t budge and the State has borrowed the money from BofI to pay the note instead, and that money is due back to BofI next year.

    I pull that shit with my credit cards. Maybe Noonan could give me a job?

  5. cross-eyed cow

    Yeah, but we own Bank of Ireland.

    So, this time next year, we can just not pay ourselves back .

    It’s actually genius.

      1. Maths genius

        So we only pay 15 per cent back. Still a win for the Baldy man from Limerick, right?


  6. paul

    If fine gael weren’t corrupt to their very core this would be laughable.

    get down to the convention centre tomorrow

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