Kenny admits ‘significant challenges’ to renegotiate promissory note deal

The Taoiseach has admitted there are “very significant challenges” in negotiations with the ECB on reducing the burden of the €30bn promissory note used to bail out Anglo Irish Bank.

Enda Kenny sounded a far more cautious note on the deal yesterday than in recent weeks, but said he was “confident that we will have a conclusion and a deal on this before the next payment date which is due at the end of the March”.

Ministers discussed the issue “briefly” at yesterday’s Cabinet meeting, despite a rejection from the ECB of the Government’s preferred option to restructure the notes by wrapping them into 30- to 40-year bonds.