Tag Archives: Promissory Note


CEO OF Irish Mortgage Holders David Hall, Independents 4 Change TD Joan Collins, and Social Democrats TD Catherine Murphy outside the Four Courts in Dublin this morning

Further to Independents 4 Change TD Joan Collins’ Supreme Court appeal against the constitutionality of the €31 billion promissory note [to pay Anglo, Irish Nationwide Building Society and Educational Building Society over 15 years from 2010]….

A reserved judgement means the court will review the details of the case and provide a written verdict at an unspecified future date.

Pic: Fiona Fitzpatrick

“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)



That proposed delay on the €3.1 billion cash payment due on March 31?

Not looking good.

More than six months after Dublin first raised the matter with the ECB, the Frankfurt-based institution is pushing back heavily against persistent Irish demands for a concession to ease the cost of rescuing the former Anglo Irish Bank.
Within the ECB, the view remains that alternative avenues are open to the Government to improve its finances, among them reductions in public sector pay and welfare entitlements.

The argument is made that average public pay and welfare levels in Ireland are higher than the average in some of the other euro zone countries that are supporting Ireland’s bailout, among them Spain, Slovenia and Slovakia.

Push to get debt burden reduced hits strong ECB resistance (Irish Times)

Meanwhile in other ‘Good Luck With That’ news:

Mario Draghi confident of Irish ‘Yes’ vote (RTE News)