‘No debt writedown in promissory notes deal’

The Government is negotiating a restructuring of the €32bn in promissory notes that will be “very advantageous” to the Irish people, although this does not include any debt writedown, Central Bank Governor Patrick Honohan told the Oireachtas finance committee yesterday.

Mr Honohan said the priority was to secure a deal before the next €3.1bn promissory note payment at the end of March — echoing comments made by Taoiseach Enda Kenny and the finance minister.

Mr Honohan said he could not disclose too many details about the restructuring deal, other than it involved a significant lengthening of the time period over which the total amount has to be paid back and an adjustment of the interest rate.