Seanad on standby amid Anglo Irish Bank speculation

There is increasing speculation this evening that a deal on the Anglo Irish Bank promissory notes is imminent.

The Seanad has even been put on standby having being told to expect special legislation from the Department of Finance tonight.

Central Bank Governor Patrick Honohan is in Frankfurt and about to table a deal for a new repayment arrangement on the promissory notes, where a decision could be rubber-stamped tomorrow.

It is understood that as part of this, a restructuring of the Irish Bank Resolution Corporation (formerly Anglo Irish Bank) would be needed and that would require special legislation to go through the Oireachtas.

This is necessary so that the toxic institution that is being wound down would return to being a functional bank with a licence, allowing for the issuance of a long-term bond.