Noonan: €3.1bn deal on Anglo a ‘one-off’

The Government has agreed a deal to avoid forking out €3.1bn in cash to pay down Anglo-related debt this weekend.

Instead of handing over cash, the Coalition will issue a long-term bond — essentially an IOU — that will not be repayable until 2025.

The Government will have to pay interest on the bond — a move that will have a €90m impact on the exchequer this year — but said this was a far better outcome than the immediate outlay of €3.06bn.