Cabinet to get watered down debt deal

The Government is in line for a watered down deal on the €30bn Anglo promissory note after ECB sources suggested any agreement will be limited and not yield any savings to the State.

The Coalition had effectively staked its reputation on striking a deal ahead of the €3.1bn repayment due at the end of March.

However, it has suffered a major setback after the governing council of the ECB rejected the proposal by the Department of Finance to wrap these payments up into a 30 to 40-year bond.