Governor denies debt deal will unravel

Central Bank governor Patrick Honohan yesterday insisted that the Anglo promissory note deal would not unravel and further denied reports of fraught talks with ministers in the hours leading up to last week’s agreement.

His comments came as ministers seemed at odds over whether the bank debt deal would ease future budgets for taxpayers.

He said the country’s debt was now “more sustainable” following the midweek deal which turned Anglo Irish Bank promissory notes into long-term bonds.