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Thread: Noonan : Restructuring Promissory Note rather than burden sharing

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    Politics.ie Member Dreaded_Estate's Avatar
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    Default Noonan : Restructuring Promissory Note rather than burden sharing

    Ireland wins concessions on bailout rate - RT News

    Minister Noonan said a longer-term structured arrangement on the 30bn which the State put into Anglo Irish Bank would be more valuable than an agreement that burden sharing could be imposed on senior unsecured bondholders.

    The promissary note was a method of paying for the cash sunk into Anglo by way of a 3bn payment each year.

    Mr Noonan said that once the interest rate holiday on that arrangement expired in 2013 it would become a very expensive burden.

    He said he hoped to begin a negotiation process with the ECB on switching the current arrangement to a longer-term facility, possibly up to 30 years with a more favourable interest rate.

    It is thought this could, if agreed to, mean an annual paydown of 1bn instead of 3bn.

    Mr Noonan said he was "committed to raising burden sharing again", but that the promissary note issue was "more valuable to Ireland than any burden sharing on residual bondholders."
    I think this could be a very sensible move. Drop the threat for burden sharing on the remaining 3bn Anglo senior bonds in return for a lower interest rate on the promissory notes, which will be 1.8bn each year from 2013. Plus reduce the annual promissory notes payments from 3n per annum to 1bn.

    This could potentially reduce the Anglo payments from 4.9bn (3.1bn capital and 1.8bn interest) each year to 2bn per annum

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    Quote Originally Posted by Dreaded_Estate View Post
    Ireland wins concessions on bailout rate - RT News



    I think this could be a very sensible move. Drop the threat for burden sharing on the remaining €3bn Anglo senior bonds in return for a lower interest rate on the promissory notes, which will be €1.8bn each year from 2013. Plus reduce the annual promissory notes payments from €3n per annum to €1bn.

    This could potentially reduce the Anglo payments from €4.9bn (€3.1bn capital and €1.8bn interest) each year to €2bn per annum
    Just refuse to pay. They are not our debts to pay. They are the direct responsibility of the ECB. The ECB had responsibility for Central Banks across Europe and the Central Banks were responsible for Bank Regulation.

    Anglo was a Private Merchant Bank with no connection to ordinary Irish Citizens.

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    Politics.ie Member Dreaded_Estate's Avatar
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    Quote Originally Posted by MPB View Post
    Just refuse to pay. They are not our debts to pay. They are the direct responsibility of the ECB. The ECB had responsibility for Central Banks across Europe and the Central Banks were responsible for Bank Regulation.

    Anglo was a Private Merchant Bank with no connection to ordinary Irish Citizens.
    If we refuse to repay senior bonds we save €3bn.
    But if we repay the senior bonds (even though we shouldn't have to) and they agree to this new deal we save €3bn each year?

    Which makes most sense?

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    Politics.ie Member Grumpy Jack's Avatar
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    This may explain Noonan's very public grandstanding on burning the senior unsecured, unguaranteed Anglo bondholders - and Trichet not understanding why he kept being asked about it.

    Cliff Taylor, editor of the Sunday Business Post, told Damian Kiberd on Newstalk that he believed the 3bn Anglo bond burn bid that Noonan and the government made in Washington earlier this year was really a blind to get something more valuable from the ECB.

    It appears Cliff was on the right track.

    If Noonan gets this then it will make a massive difference - much more than the bailoutr interest reduction.

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    Politics.ie Member hammer's Avatar
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    New rate savings 'worth €250m a year' - RT News

    The man should be complimented.

    He also saved an additional €250 million on annual interest payments

    If that was DELUDED they would be looking for commission

    Well done Baldy.

    Another good day for Ireland.

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    Politics.ie Member Grumpy Jack's Avatar
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    Quote Originally Posted by MPB View Post
    Just refuse to pay. They are not our debts to pay. They are the direct responsibility of the ECB. The ECB had responsibility for Central Banks across Europe and the Central Banks were responsible for Bank Regulation.

    Anglo was a Private Merchant Bank with no connection to ordinary Irish Citizens.
    We are legally bound to pay these Promissiory Notes whether we like it or not because FF guaranteed Anglo debt and committed the State (not simply an FF-led government) to repay them over 10 years.

    This has been explained to you time and time again but you insisit on ignoring legal, financial and political realities for your own fantasy view of the world.

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    Quote Originally Posted by Dreaded_Estate View Post
    If we refuse to repay senior bonds we save €3bn.
    But if we repay the senior bonds (even though we shouldn't have to) and they agree to this new deal we save €3bn each year?

    Which makes most sense?
    Refuse to honour the Senior Bonds and the Prommissory Notes. Then you save 3 billion and another 4.9billion a year.

    Of all the debts the last shower guaranteed the debts of Anglo are repugnant to common decency and morality. Let the ECB honour them if they wish but under no circumstances should Irish Citizens honour these reparations.

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    Quote Originally Posted by Grumpy Jack View Post
    We are legally bound to pay these Promissiory Notes whether we like it or not because FF guaranteed Anglo debt and committed the State (not simply an FF-led government) to repay them over 10 years.

    This has been explained to you time and time again but you insisit on ignoring legal, financial and political realities for your own fantasy view of the world.
    Eventually we will get a Govt that will prove to you and others that the guarantee can be over turned.

    All it takes is the political will and a backbone.

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    Politics.ie Member Grumpy Jack's Avatar
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    Quote Originally Posted by MPB View Post
    Refuse to honour the Senior Bonds and the Prommissory Notes. Then you save 3 billion and another 4.9billion a year.

    Of all the debts the last shower guaranteed the debts of Anglo are repugnant to common decency and morality. Let the ECB honour them if they wish but under no circumstances should Irish Citizens honour these reparations.
    Of course it is repugnant and immoral to have to repay Anglo debts but we are legally bound to do so under Irish, European and International law.

    That's the reality - and it has more effect on the government's considerations than your fantasy internet ramblings.

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    Noonan does not Know his Arse for his elbow!

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