Debt deal may ‘tie up Anglo loose end’

Central Bank governor Patrick Honohan says he hopes Ireland’s bank debt deal — hammered out in Brussels in the early hours of yesterday morning — could lead to a long-term solution over the outstanding debt linked with failed lender, Anglo Irish Bank.

Noting that a lack of any existing commitment to long- term, low-cost financing of Anglo — now IBRC — cash needs has been one of the obstacles to Ireland re-entering the international debt markets, he said this could be a turning point.

“With last night’s summit statement, it may not be un-realistic to hope that this important loose end can be tied-up relatively soon,” Mr Honohan said in a speech at an Institute of International and European Affairs conference in Dublin yesterday.