ECB chief dismisses promissory notes deal

ECB president Mario Draghi has made a withering reference to Ireland and the efforts to swap the Anglo Irish Bank promissory notes for more affordable funding.

It was the latest in aseries of references suggesting talks between the Government and the ECB on easing the annual cost of at least €3bn on the taxpayer are not going smoothly. Mr Draghi was told by Fine Gael MEP Gary Mitchell that Ireland had done the heavy lifting involving 70% of the troubled bank debts but needed help with the rest.

Mr Mitchell said the work would be done, but that it was getting more difficult. “We are now carrying things on the national balance sheet that we should not be carrying. We are hindering the very difficult measures being taken to bring cashflow under control by not rescheduling the promissory notes,” he said.