Ireland would be in a very strong position to get a better deal on the cost of the bailout and reduce the country’s deficit if Spain succeeds in getting a special arrangement for its banks, Communications Minister Pat Rabbitte has said.

Bank of Ireland will hold an extraordinary general meeting on June 18 to approve its role in a refinancing operation the Government is using to delay a €3.1bn cash repayment to the failed Anglo Irish Bank.

Ireland must continue to make payments on €27bn-worth of high-interest IOUs on schedule, ECB president Mario Draghi said yesterday.

The Government is in no rush to get a deal on restructuring the €31bn promissory notes, preferring to leave it until later in the year, Finance Minister Michael Noonan said.

Central Bank governor Patrick Honohan is to be forced before the Dáil finance committee to answer questions on the Anglo promissory note controversy following a humiliating defeat for the Government.

Finance Minister Michael Noonan indicated that Ireland is still quite a long way off getting a deal to cut the cost of the €31bn promissory notes for the defunct Anglo Irish Bank.

The Government is negotiating a cut in the interest rate on the promissory notes or IOUs used to rescue Anglo Irish Bank and a prolonged period to pay them which could save billions of euro, according to European Affairs Minister Lucinda Creighton.

Finance Minister Michael Noonan has intensified his campaign to cut the cost of repaying Anglo’s debts on the day the state handed over €1.2 billion to investors.

SLIGHTLY more money will pass through the Irish economy next year despite the Government taking €6 billion out of it.