Tag Archives: Anglo

The Anglo Not Our Debt Campagin deliver a petition of 7,000 signatures protesting against honouring the zombie bank’s promissory notes at government buildings within the last hour. Top pic: Cathleen O’Neill. Bottom pic, from left, Garda officer, John Bissett, Cathleen O’Neill and Mark Malone.

(Sam Boal/Photocall Ireland)

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“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)

Meanwhile…

 

Mark Malone writes:

Here a sneak preview shot of Debt Justice Action network getting ready for the day ahead.We kick off with a public meeting/press conference at 11.15am, Central Hotel, Exchequer St, Dublin, then we have a few actions through the day at Department of Finance, Anglo buildings and of course we will be joining a multitude of groups descending upon the FG Ard Fheis [at the Convention Centre, Dublin] later at 5.30pm

Read the statement by the Minister for Finance, Michael Noonan, to the Dáil this afternoon on the March 31 Promissory Note here.

In short: He’s replaced the promissory note with a government bond (so it’s one IOU for another). This bond is given to Anglo, who take it to the Bank of Ireland. The BoI gives Anglo cash in return for the bond, thus paying off the promissory note payment. Meanwhile, the BoI swaps the IOU with the ECB in return for cash.Where Nama comes into it confuses us entirely.

THE challenge: Can anyone explain this transaction in less than 50 words?

Meanwhile, a welcome Irish Times typo:

Earlier: Anglo Boss Made €866,000 LAST YEAR

Thanks BlackMamba

 

What are we?

Mugs.

That’s what we are.

(Eamonn Farrell/Photocall Ireland)

How will they spin their way out of this one?

Yes. That old trick.