Cliff Taylor of The Business Post has the scoop
The Sunday Business Post
and RTE have more detail : Govt set to liquidate Anglo as part of debt deal - RTÉ NewsThe government is understood to be in the final stages of talks with the ECB on the restructuring of promissory note payments, with the prospect of special financial legislation going through the Oireachtas in relation to some restructuring of IBRC as part of any deal.
Anglo /IBRC will be liquidated with Nama taking on its assets, though the our Central Bank may assume some of the balance sheet. Also the government will issue new securities to cover the liquidation shortfall. Here is the legislation to liquidate the IBRC : Irish Bank Resolution Corporation Bill 2013 (Number 9 of 2013) - Tithe an Oireachtais Also here is Michael Noonan's speech which serves as a useful overview of the Bill.
ECB sign off will be from formal council meeting tomorrow, and informally at tonight's working dinner. ECB offers Ireland deal on Anglo notes - RTÉ News
The deal will likely see longer repayment schedule (25-40 years) at lower interest (a floating rate in the order of 3 to 3.5%). Key to the deal will be how the actual financial figures showing the reduction in our liabilities in NPV. No sign of this yet, and it may only emerge post liquidation.
1) Here's a useful old column by Karl Whelan that explains the kernel of the deal : How Much Would Ireland Benefit from Replacing the Promissory Notes with a Long-Term Bond?
2) Are folks happy that this complex financial engineering will be rushed through as emergency legislation with relatively little scrutiny ? Especially as just a day ago Noonan himself said we still had 7 or 8 weeks left ? There are two theories why
a) Negotiating brinksmanship with ECB
b) Legal reasons: that as news of deal leaked interested parties might seek to take action against IBRC
3) Will this deal be good enough for Labour malcontents - and will Ireland be able to focus efforts on deficit reduction as is so badly needed ?