ECB 'rejects promissory note proposal' - report

The European Central Bank has dismissed Ireland's preferred route for a better deal on the terms of our bailout programme, according to a report from the Reuters news agency.

ECB 'rejects promissory note proposal' - report

The European Central Bank has dismissed Ireland's preferred route for a better deal on the terms of our bailout programme, according to a report from the Reuters news agency.

Finance Minister Michael Noonan had proposed converting the Anglo promissory note into long-term government bonds. Payments of €3.1bn per year are required until 2023 to service the note.

The Reuters report says the ECB's Governing Council rejected the proposal on the grounds that it amounted to "monetary financing" of the Government, which is prohibited under article 123 of the EU treaty.

Speaking this morning before meetings with EU finance leaders aimed at resolvingt issue, Tánaiste Eamon Gilmore said a deal needed to be done very soon.

"The promissory note is due to be paid at the end of March, so that is the deadline within which we have to conclude an agreement with the European Central Bank," he said.

"We have been working over a long period of time to win support for a satisfactory deal on this issue for the Irish taxpayer."

Sinn Féin's Pearse Doherty said the news was a "massive blow" to the taxpayer.

"I am alarmed at today's news that the ECB have rejected the government's preferred option in dealing with the Promissory Notes," Deputy Doherty said.

"The next due payment from the IRBC promissory notes falls due in only a matter of weeks. We hear today that the government has failed to convince the ECB that their preferred solution is acceptable.

"Despite weeks of positive spin by the Government it appears that a deal on this years €3bn payment to Anglo is now less certain.

"It is totally unacceptable that the Irish people have to hear about these negotiations from news sources.

"It is time for an end to dealing behind closed doors and spinning these critical talks in a dishonest way."

More in this section

War of Independence Podcast

A special four-part series hosted by Mick Clifford

Available on
www.irishexaminer.com/podcasts

Commemorating 100 years since the War of Independence