Promissory notes were ‘unusual but not unlawful’

A senior official with the Department of Finance has told the High Court that promissory notes issued in 2010 by the finance minister to recapitalise Anglo Irish Bank and other institutions for €31bn were “unusual” instruments but not unlawful.

Ann Nolan, second secretary in the department, said it was the view of the Department of Finance in 2010 that it was necessary to provide unconditional financial support to the relevant banks.

The notes, issued under the provisions of the Credit Institutions Financial Stability Act 2008, were issued in circumstances where the troika was anxious there would be significant sums available for capitalisation of banks, she said.