Deal could free banks from loss-making mortgages

A re-negotiation of the promissory notes, or IOUs, on bank debt is under way and any deal could also see banks freed from some loss-making mortgages, the finance minister has said.

Amid reports that Ireland may be allowed to suspend the annual €3.1bn payments on Anglo Irish Bank debt, Michael Noonan said the Government was attempting to restructure the repayment timetable.

But any deal to delay or spread the estimated total €30bn in debt payments looks some way off, ministers indicated yesterday.