Deferring €28bn promissory notes represents ‘best deal’

A 20-to 30-year deferral of the €28bn in promissory notes relating to Anglo and Irish Nationwide would be the most effective way of restructuring Irish bank debt, according to UCD economist Karl Whelan.

“However, given the need for agreement from the ECB governing council, this is unlikely to be obtained,” he says.

The Government is in negotiations with the troika in an effort to secure a deal on the €64bn used to bail out the banking system. Of this, roughly €34bn is in the form of promissory notes used to plug the massive capital holes in Anglo and Irish Nationwide.