The €31bn promise

A deal aimed at easing the bank debt burden is expected to be agreed between the Government and the European Central Bank after a dramatic 24 hours for the Coalition.

Finance Minister Michael Noonan was forced last night to liquidate the Irish Banking Resolution Corporation with legislation that was voted on in the Dáil in the early hours of this morning.

Mr Noonan said he would have preferred to introduce a bill giving effect to the liquidation “in tandem” with an announcement on a promissory note deal.