This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-21361339

The article has changed 14 times. There is an RSS feed of changes available.

Version 11 Version 12
Anglo Irish Bank debt deal gets ECB clearance Anglo Irish Bank debt deal gets ECB clearance
(about 5 hours later)
The European Central Bank has cleared a deal to liquidate the former Anglo Irish Bank, the Republic of Ireland's Prime Minister has said.The European Central Bank has cleared a deal to liquidate the former Anglo Irish Bank, the Republic of Ireland's Prime Minister has said.
"Today's outcome is a historic step on the road to economic recovery," Enda Kenny told the Irish parliament."Today's outcome is a historic step on the road to economic recovery," Enda Kenny told the Irish parliament.
This follows emergency legislation last night and paves the way for a restructuring of Ireland's most controversial bank bailout. The Dail passed emergency legislation overnight for the deal, which lets Ireland defer by decades the bill for its most controversial bank bailout.
Anglo Irish, now called IBRC, was nationalised in January 2009.Anglo Irish, now called IBRC, was nationalised in January 2009.
Under the plan, its debt will be transformed into a long-term bond. 'More manageable'
The scheme is designed to ensure the repayments are reduced and spread over a longer period. Under the plan, the debt taken on by Dublin to finance Anglo Irish's rescue will be swapped for long-term government bonds.
The debt had been costing Irish taxpayers 3.1bn euros each year. The original debt was set to cost Irish taxpayers 3.1bn euros (£2.6bn) each year for 10 years, starting this March.
The legislation went through parliament after details of negotiations between the Irish government and the ECB were leaked on Wednesday. Under the replacement bonds, repayment of the debt will not now begin until 2038, and will not be complete until 2053.
In a sitting running into the early hours of Thursday, politicians in the lower house of the Irish parliament voted through the legislation by 113 to 36. The interest rate on the new debt has also been cut to 3%, compared with 8% on the old debt.
Liquidation may enable Dublin to delay by several years the repayment of debts it took on to rescue Anglo Irish. However, the full details of the new debts are not available, so it is unclear exactly how much money the government might stand to save.
The vote came after a stormy session in which the plans were attacked for their swift timeframe and lack of detail. Finance Minister Michael Noonan said that inflation over the coming decades would make the replacement debts much more manageable once they come up for repayment.
By deferring the debt repayments, it also means the the government's deficit - its annual borrowing requirement - will be 2bn euros per year less than it would have been over the coming 10 years.
'Very special case'
The Irish parliament stayed up into the early hours of Thursday morning in order to pass the legislation enacting IBRC's dissolution.
The lower house of the Irish parliament voted through the legislation by 113 to 36.
It came after a stormy session in which the plans were attacked for their swift timeframe and lack of detail.
The leader of the Socialist Party, Joe Higgins, said the introduction had been "chaotic".The leader of the Socialist Party, Joe Higgins, said the introduction had been "chaotic".
The Republic of Ireland's central bank governor, Patrick Honohan, had been negotiating the plan with the European Central Bank (ECB) late on Wednesday.
Mr Kenny said the disappearance of Anglo Irish Bank and the Irish Nationwide Building Society, which is also held by IBRC, from the Irish financial landscape was "long overdue" and that without banking costs, Ireland's debt levels would now be below Germany's.Mr Kenny said the disappearance of Anglo Irish Bank and the Irish Nationwide Building Society, which is also held by IBRC, from the Irish financial landscape was "long overdue" and that without banking costs, Ireland's debt levels would now be below Germany's.
The late sitting was needed in order to have the new law in place before the European Central Bank completed its regular board meeting on Thursday.
The Republic of Ireland's central bank governor, Patrick Honohan, had been negotiating the plan with the ECB late on Wednesday, when details leaked to the press.
The ECB President, Mario Draghi, said at his regular monetary policy press conference on Thursday afternoon that the board had unanimously "noted" the deal, but said it was a matter between the Irish government and central bank.
However, the ECB had the power to veto the agreement.
It comes at the end of 18 months of negotiations during which the ECB is said to have resisted any move that set a precedent for other eurozone governments facing large bills for rescuing their banks, notably Spain.
Mr Honohan said on Thursday that the deal should not be interpreted as such a precedent. "It is a very special case," he said.
Toxic loan bookToxic loan book
IBRC's board was dismissed on Wednesday and the accountants KPMG are now running the bank.IBRC's board was dismissed on Wednesday and the accountants KPMG are now running the bank.
Its loans will be transferred to the National Asset Management Agency (Nama), the Irish "bad bank" responsible for recovering the value of problematic loans made by other Irish banks.Its loans will be transferred to the National Asset Management Agency (Nama), the Irish "bad bank" responsible for recovering the value of problematic loans made by other Irish banks.
A so-called promissory note, under which Dublin must pay 3.1bn euros (£2.7bn; $4.2bn) a year until 2023, would be turned into sovereign bonds that may not have to be fully repaid for up to 40 years.
The result would be that Dublin postpones repayment of a huge debt burden. The government had previously wanted to reschedule the debt repayment, but this was blocked by the ECB after 18 months of negotiations.
The ECB was reluctant to be seen to be providing debt relief to a national government.
The IBRC has been winding down the old toxic loan book of Anglo Irish for more than two years.The IBRC has been winding down the old toxic loan book of Anglo Irish for more than two years.
The Irish government issued the total 31bn-euro promissory note in order to cover most of the 34bn-euro cost of rescuing Anglo Irish.The Irish government issued the total 31bn-euro promissory note in order to cover most of the 34bn-euro cost of rescuing Anglo Irish.
The bank, which still employs almost 800 people, was among the most prolific of lenders to property speculators and developers during the Irish Republic's housing bubble in the last decade.The bank, which still employs almost 800 people, was among the most prolific of lenders to property speculators and developers during the Irish Republic's housing bubble in the last decade.
Liquidation would mean all these would lose their jobs, although the government said the majority of these are expected to be rehired by Nama. Liquidation would mean all these workers would lose their jobs, although the government said the majority of these are expected to be rehired by Nama.