Noonan’s 40-year bond gets mixed response

The suggestion that Finance Minister Michael Noonan is considering using a 40-year bond to try to plug the promissory notes gap has been met with mixed responses from analysts.

Davy’s economist Conall MacCoille said that a similar plan had been floated by Spanish authorities and promptly shot down by the European Central Bank.

“Spain proposed a plan to recapitalise Bankia by issuing bonds to be used as collateral at the ECB short-term three-month financing window,” said Mr MacCoille.