Germany backs Anglo promissory note deal –
Above German Finance Minister Wolfgang Schauble
Ahead of today’s visit to Dublin by German finance minister Wolfgang Schäuble, German officials said retooling the emergency loans to the defunct bank was more politically palatable than transferring Irish legacy bank debt to the European Stability Mechanism (ESM) bailout fund.
Irish officials indicated yesterday that Minister for Finance Michael Noonan would concentrate in today’s talks on the promissory note – issued to pay depositors and creditors of Anglo Irish Bank and, later, Irish Nationwide – and would return to the legacy debt issue when there was more promise of political progress.
Mr Schäuble will hold talks with Mr Noonan and Minister for Public Expenditure Brendan Howlin ahead of a joint press conference. Both sides played down expectations of substantial progress today, ahead of Thursday’s talks in Berlin between Taoiseach Enda Kenny and German chancellor Angela Merkel.
“On the promissory notes it’s difficult to say anything in public as, officially speaking, this is European Central Bank territory,” said a German political source.
“A promissory note deal wouldn’t change the actual amount of debt,” said another official, “but would turn it into a 40-year mortgage.”
The promissory note obligations, an IOU issued to stabilise Anglo Irish Bank, have been the subject of ongoing technical discussions with the ECB.
Posted on October 29, 2012, in Government, IMF/ECB and tagged Anglo Irish Bank, Banks, European Central Bank, European Stability Mechanism, Irish, Irish Nationwide Building Society, Irish News, Irish Times, Michael Noonan, Promissory note, Wolfgang Schäuble. Bookmark the permalink. 1 Comment.