Ministers head for Europe to get support for Anglo debt reduction

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.

The lobbying of EU members to agree to the reduced terms will see Enda Kenny travel to Paris in the coming weeks as well as other ministers travelling to Spain and Portugal, among other countries, she told the Irish Examiner.

Ms Creighton said the main proposal to reduce amounts going to Anglo was a cut in the interest rate on IOUs and a stretching out of the payment period.