EU: No deal on €32bn put into banks

EU leaders are threatening to slam the door on Ireland recapitalising its €32bn bank debt from the union’s rescue fund — the next debt overhang the Government has promised to tackle.

Taoiseach Enda Kenny, having secured a deal on the promissory notes and extra funds from the EU’s budget, said it would not be considered before next year and added: “I cannot predict the complexities associated with that”.

It came as a High Court judge in Dublin said the new Irish Banking Resolution Corporation Act appears to give no power to the courts to lift the new statutory stay in the act halting all existing proceedings against IBRC, formerly Anglo Irish Bank.