Final bonds associated with the winding-up of IBRC cancelled 

Cancellation of €534m tranche of floating rate bonds represents the 'end of a long chapter in Ireland’s banking crisis'

The bonds were issued in 2013 in connection with the liquidation of Irish Bank Resolution Corporation, formerly Anglo Irish Bank and Irish Nationwide. Picture: Gareth Chaney

The National Treasury Management Agency (NTMA) has cancelled the final €534m tranche of floating rate bonds connected with the liquidation of the Irish Bank Resolution Corporation, formerly Anglo Irish Bank and Irish Nationwide.

The bonds were issued in 2013 following the Irish Bank Resolution Corporation Act. In total, €25bn worth of floating rate bonds were exchanged for the promissory notes held by the Central Bank on foot of the Irish Bank Resolution Corporation liquidation.

At the time, the Central Bank committed to disposing of these bonds as soon as possible, once financial conditions improved.

Frank O’Connor, chief executive of the NTMA, called the transaction a “milestone” for the country.

“In 2013, the exchange of the promissory notes for floating rate bonds allowed Ireland space to deal with its schedule of debt maturities, at a time when we were coming out of the EU-IMF programme and re-entering the debt markets," he said.

These bonds carried with them regular interest rate payments which varied with market rates. This final bond is due to mature on June 18, 2053.

This final tranche of bonds were purchased from the Central Bank of Ireland and subsequently cancelled. 

Vasileios Madouros, deputy governor of the Central Bank, said the cancellation of these bonds “represents the end of a long chapter in Ireland’s banking crisis”.

The long-lasting scars that crises can leave on the economy and society underscore the importance of the substantial regulatory reforms introduced over the past decade to strengthen the resilience of the banking system.

Every year since 2014, the NTMA has been regularly purchasing back these bonds and cancelling them. Earlier this year, it had cancelled €2bn worth of these bonds.

Finance Minister Michael McGrath said the cancellation of bonds 'brings to an end' a specific consequence of the banking crisis of more than a decade ago. Picture: PA

The announcement was welcomed by Finance Minister Michael McGrath who said it “brings to an end” a specific consequence of the banking crisis of more than a decade ago.

“I am also very happy to say that the substantial regulatory reforms put in place domestically and with our EU partners during the years since the crisis mean that the Irish banking system is much better placed to face any future challenges, should they arise,” Mr McGrath said.