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Anglo Debt Repayment

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Promissory note deal could be reached in May - EU sources. Tuesday 03 April 2012 21.55 A long-term solution to the Anglo Irish Bank promissory notes could be reached as early as mid-May, just two weeks before the referendum on the fiscal treaty. Well-placed sources told RTÉ that the EU bailout fund, the European Financial Stability Facility, is the preferred option to replace the promissory notes on more favourable terms. "The broad idea is to use the EFSF to replace the promissory notes, to try to use it to further strengthen the Irish banking sector so that Irish banks can regain market funding under better conditions," one EU source said.

"There is a common understanding that this is the only and best solution to the issue," a second well-placed EU source said. The idea is that the EFSF issues a long maturity bond, or bonds, worth €28bn, with low interest rates, which would replace the State's obligation to pay €3.1bn annually over tenyears. Nor would there be any new conditionality attached to the extension, officials said.

Caution Bailout review. Anglo promissory note payment to be deferred - The Irish Times - Thu, Mar 29. Irishtimes.com - Last Updated: Thursday, March 29, 2012, 21:11 MARIE O'HALLORAN and MICHAEL O'REGAN The Government has agreed a deferral of the €3.06 promissory note instalment in favour of a long-term Irish Government bond. In a statement to the Dáil Minister for Finance Michael Noonan said the proposal would not involve any adjustment or variation to the terms of the promissory note for the former Anglo Irish Bank.

Mr Noonan said: “Put simply, €3.06 billion will be settled by delivery to IBRC [Irish Bank Resolution Corporation] of a long-term Government bond with an equivalent fair value. “Ultimately, it is intended that this long-term Government bond will be financed for one year, on commercial terms, with Bank of Ireland who may in turn refinance the bond with the ECB.” He said the transaction was approved by the board of Bank of Ireland, but “it remains subject to the approval of the Bank of Ireland shareholders”. Email Us. Ireland sets out debt deferment plan. Can we make Irish promissory notes a bit more bonkers? Yes we can. 29/3/2012: Promissory Note 'deal' 2012. Trying to sort out the convoluted 'deal' announced by the Minister today and juggle two kids, plus struggle against the computer on a strike from too many files open is a challenge.

I might be missing something, but here's my understanding of the thing.€3.06bn will be delivered not i cash, but in a long-term Government bond of the equivalent fair valueWe do not know maturity, but 2025 was mentioned before. Ditto for coupon rate, though Prof Honohan mentioned 5.4% coupon.Current pricing in around 88% of the FV, so €3.06*0.88=€3.47bn issuance to deliver fair value. If average over longer term horizon is taken - that would go up. If yield is higher - that will go up. Following the announcement by the Minister, there were no questions allowed by Dail members and the Minister moved on to the really important stuff - straight to press briefing in the Department of Finance.

Welcome to the wonderland of wonderlenders. Updates: Karl Whelan has an excellent post on the 'deal' - here. Interest plan for Anglo is just 'red herring' Government talk of restructuring the interest on the €3.1bn promissory note to the former Anglo Irish Bank has been dismissed as a distracting 'red herring' by three of the country's most eminent economists, including one former government adviser. Amid the mounting opposition to the State ploughing €3.1bn of taxpayers' money into the now-defunct bank at the end of March, the Government's stance on the promissory note has been blasted as "irrelevant noise".

Finance Minister Michael Noonan and Taoiseach Enda Kenny have repeatedly stated that they want to get the interest on the promissory note restructured, in a bid to save the Irish economy €20bn. The government leaders have branded the interest rate as "penal". However, speaking to the Sunday Independent this weekend, three of the country's leading economists -- Dr John FitzGerald of the ESRI, Professor Karl Whelan of UCD and Dr Alan Ahearne of NUI Galway -- have all rejected this as untrue. - DANIEL McCONNELL Chief Reporter.

Zombie banks are dragging Ireland into the ground | Nick Dearden. Activists more accustomed to campaigning against the debts of countries like Zimbabwe, Egypt, Ecuador and Indonesia were instead outside the Irish embassy this morning. Dressed as zombies, we hoped to shed some light on the so-called "zombie banks" whose debts continue to drain resources from an Irish public sector that is being slashed to the bone. Ireland's financial crisis has much in common with scores of countries across the developing world. The country has been brought to its knees by an enormous debt, which originated not with excessive public spending, but a footloose financial sector that gambled with the future of the country. Without so much as a vote, Ireland's people found themselves on the hook for tens of billions of euros of reckless investments.

The ultimate symbol of this form of crony capitalism in Ireland is Anglo Irish, the bank that started Ireland's slide into the abyss. To date over €7bn has been paid by the Irish government to Anglo's investors. Anglo, la banque zombie qui coûte cher à tous les Irlandais. L’Irlande n’a pas fini de payer le prix de la bulle immobilière qui l’a frappée de plein fouet en 2008. Les banques du pays, coupables et victimes de cette crise, ont du être renflouées à de multiples reprises par le gouvernement irlandais et constituent aujourd’hui une lourde charge pour le budget gouvernemental, et donc pour les contribuables.

Au total près de 47 milliards d’euros ont été débloqués pour recapitaliser et nationaliser les banques de l’île. Parfois en vain. Ainsi, malgré les milliards injectés, l’une des banques les plus imprudentes pendant la crise, Anglo Irish Bank, est finalement en train d’être démantelée, après ses pertes abyssales de 17 milliards d’euros en 2011. De l'aveu même de Michael Noonan le ministre des finances irlandais, La seule chose qui permette de donner le nom de banque à Anglo, c'est sa licence de banque. Pourtant, cette banque continue de coûter très cher. Et, pas question de tergiverser. La goutte d'eau de trop ? Qui va toucher ces versements ? Protesters descend on former Anglo Irish Banks in Galway and Dublin. Www.karlwhelan.com/IrishEconomy/Whelan-CrokePark.pdf. Noonan’s bluff: time to call the minister on his four month-old claim of negotiations on Anglo’s promissory notes.

January 20, 2012 by namawinelake If you were paying attention yesterday and caught the two press conferences given after the bailout troika of the IMF, EU and ECB had concluded their latest “mission” toIreland, you would have been struck by the contrast between claims made at the first press conference given by Ministers Noonan and Howlin and the second where the Troika was questioned. For example, our own ministers were far more upbeat about the sale of state assets and their deployment for a much-needed jobs stimulus, the Troika downplayed the immediacy of any such stimulus, and indeed if you think about what would be involved in selling some state assets, it seems like it will be years before the funds might be available for any stimulus. There was no mention at the ministerial press conference of the fact that the IMF had downgraded its forecast for economic growth inIrelandin 2012, from 1% to 0.5%, the Government officially projects 1.3%.

Time to call the Minister’s bluff? The Irish village that said 'no' to austerity | World news. As the bus pulls up on the empty road to let me off, the driver smiles at me. "This is rush hour," he jokes. "This is the most exciting thing to happen here all day. " If there is one thing people know about Ballyhea, it seems, it's that it is in the middle of nowhere and nothing much happens. The taxi driver who drove me to Cork warned me of its sleepiness, and the woman sitting next to me can't understand why I am here. But the reason is simple: Ballyhea may be quiet, but it's angry. Residents have started marching in the hamlet – a smattering of farms and a small housing estate, pulled together by a church, petrol pump and school.

The march's organiser, Diarmuid O'Flynn, says he was inspired by the Arab spring, but it's hard to think of a place further from the heat and turmoil of the Middle East than the misty fields of County Cork. Dubbed the "Celtic tiger" in the 1990s, Ireland is struggling under savage austerity measures. Denis McNamara agrees. "Around here people didn't go mad. The Dirty Dozen w/e Jan 22nd 2012. What would happen if Anglo didn’t repay the $1bn bond maturing on 2nd November, 2011 (Part 2 of 2) This is the second part of a blogpost focussing on the repayment of a senior unguaranteed, unsecured bond at Anglo; part one was posted yesterday here.

This entry examines in some detail what would happen if Anglo didn’t repay the bond. The blogpost yesterday covered the position of the main stakeholders in the making of the decision to repay the bond. And this blogpost will start by concluding on that theme. Is Minister for Finance, Michael Noonan a villain? Not at all; there is clear evidence of the man going to great lengths to communicate a message to our partners in Europewho ultimately control the ECB despite all the talk of independence.

So why doesn’t he act unilaterally? What has happened when other EuroZone (EZ) banks defaulted on bondholder debt? In the US, 100 banks had collapsed in the first six months of 2010. Irelandhas not signed up to any agreement to preserve its banks within the EZ, at all costs. What can you do? What would happen if Anglo didn’t repay the $1bn bond maturing on 2nd November, 2011 (Part 1 of 2) “There will be a debate in the House next week and I expect the Deputy, as the leader of his party, to spell out credible alternatives and an economic policy that is not based on fantasy but on reality.

If the Anglo bondholders are paid, they will be paid from their own resources. This will not come from the taxpayer.” Taoiseach Enda Kenny replying to a question in the Dail from Sinn Fein leader Gerry Adams, on 28th September, 2011. “It’s Frankfurt’s way or Labour’s way” Tanaiste Eamon Gilmore on 3rd February 2011 with the launch of Labour’s economic plan in the 2011 General Election, which he later dismissed as chapel-gate rhetoric “The Government accepts that enabling provisions in legislation may be necessary to extend the scope of bank liability restructuring to include unsecured, unguaranteed senior bonds” – Programme for Government, March 2011 “Look, it’s no longer a bank.

Anglo is now merged with Irish Nationwide. But what would happen if Anglo didn’t make the payment? Noonan bids to restructure €3bn-a-year Anglo handouts - Irish, Business. Laura Noonan – Updated 04 December 2012 09:51 AM Finance Minister Michael Noonan yesterday confirmed the effort around the promissory note, but stressed that no action would be taken if it damaged the bank's capital. Mr Noonan also confirmed that he was still hoping to force losses on Anglo's senior bondholders and would raise the issue with senior ECB officials at a finance ministers meeting in mid-September.

The comments came in a wide-ranging appearance before the Finance Committee yesterday morning, as the minister faced a grilling from more than 20 TDs and senators. Asked about the sustainability of handing out €3bn a year to Anglo over a 10-year period, Mr Noonan revealed that the State had already begun exploring ways to reschedule the payments. The situation is complicated because rescheduling in today's environment could mean upping the interest rate, which could create "a capital hole in Anglo again". "It showed we were willing to fight our corner, that continues to help us.

" Sous pression de la BCE, l'Irlande remboursement 715 millions d'euros aux créanciers de la banque Anglo. L'Irlande doit-elle continuer de rembourser les créanciers de la banque Irish Bank Resolution Corporation (IBRC) ? La question agite l'opinion publique irlandaise. Anciennement dénommée Anglo Irish Bank avant sa nationalisation puis fusion avec Irish Nationwide Building Society, les renflouements successfis de cette banque par l'Etat a déjà couté plus de 30 milliards d'euros au pays. Une véritable fortune pour ce petit pays au PIB de 160 milliards d'euros. D'autant que le pays doit appliquer des mesures d'austérité difficiles pour la population afin de respecter le plan de sauvetage du pays par l'Union européenne et le FMI, décidé par l'ancien gouvernement.

Agaçement des Irlandais Dans ce contexte, le remboursement de 715 millions d'euros aux créanciers de la banque nationalisée Anglo passe mal dans l'opinion publique. "Un entrepôt pour actifs dépréciés" En juin dernier, Michael Noonan, ministre des finances, déclarait encore à à la radio RTE : "Regardez, Anglo n'est plus une banque.