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| Version 1 | Version 2 |
|---|---|
| Anglo Irish Bank liquidation 'to help Irish economy' | Anglo Irish Bank liquidation 'to help Irish economy' |
| (about 3 hours later) | |
| The former deputy director of the International Monetary Fund (IMF) has said moves to liquidate the former Anglo Irish Bank can only make Ireland's economic situation better. | The former deputy director of the International Monetary Fund (IMF) has said moves to liquidate the former Anglo Irish Bank can only make Ireland's economic situation better. |
| Emergency legislation has passed both houses of the Irish parliament. | Emergency legislation has passed both houses of the Irish parliament. |
| It paves the way for a restructuring of Ireland's most controversial bank bailout. | It paves the way for a restructuring of Ireland's most controversial bank bailout. |
| Under the plan the bank, now the IBRC, ceases to exist. Its debt changes into a long-term bond (form of loan). | Under the plan the bank, now the IBRC, ceases to exist. Its debt changes into a long-term bond (form of loan). |
| Irish president, Michael D Higgins, was recalled from an official visit to Italy to sign the legislation. He flew back to Rome on Thursday. | Irish president, Michael D Higgins, was recalled from an official visit to Italy to sign the legislation. He flew back to Rome on Thursday. |
| The scheme is designed to ensure the repayments are reduced and spread over a longer period. | The scheme is designed to ensure the repayments are reduced and spread over a longer period. |
| Speaking on RTE's Morning Ireland, former IMF deputy director Donal Donovan said it would reduce the amount the government had to find every year to pay back the the debt. | Speaking on RTE's Morning Ireland, former IMF deputy director Donal Donovan said it would reduce the amount the government had to find every year to pay back the the debt. |
| "By reducing the 3.1bn euro principal repayment, pushing it out, we are doing two things: first of all we're reducing the amount the government has to find every year to borrow from the markets in order to come up with this 3.1bn euro - it's not going to be zero, but it'll be likely to be much less," Mr Donovan said. | "By reducing the 3.1bn euro principal repayment, pushing it out, we are doing two things: first of all we're reducing the amount the government has to find every year to borrow from the markets in order to come up with this 3.1bn euro - it's not going to be zero, but it'll be likely to be much less," Mr Donovan said. |
| "Second, by pushing it out, we are giving the opportunity for the country to grow and for recovery to take place, so that when we do start to repay this down the road, the cost is not going to be so great. That's not a trivial thing." | "Second, by pushing it out, we are giving the opportunity for the country to grow and for recovery to take place, so that when we do start to repay this down the road, the cost is not going to be so great. That's not a trivial thing." |
| 'Lack of detail' | |
| The move requires approval from the European Central Bank (ECB). That may come on Thursday. | The move requires approval from the European Central Bank (ECB). That may come on Thursday. |
| The debt had been costing Irish taxpayers 3.1bn euros each year. | The debt had been costing Irish taxpayers 3.1bn euros each year. |
| The legislation went through parliament after details of negotiations between the Irish government and the ECB were leaked on Wednesday. | The legislation went through parliament after details of negotiations between the Irish government and the ECB were leaked on Wednesday. |
| 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. | 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. |
| Liquidation may enable Dublin to delay by several years the repayment of debts it took on to rescue Anglo Irish. | Liquidation may enable Dublin to delay by several years the repayment of debts it took on to rescue Anglo Irish. |
| The vote came after a stormy session in which the plans were attacked for their swift timeframe and lack of detail. | The vote 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. | The Republic of Ireland's central bank governor, Patrick Honohan, had been negotiating the plan with the European Central Bank (ECB) late on Wednesday. |
| Members of the ECB's board are currently in Frankfurt, where they have gathered for a regular monthly monetary policy meeting. | Members of the ECB's board are currently in Frankfurt, where they have gathered for a regular monthly monetary policy meeting. |
| Property speculators | |
| An official statement from the ECB is expected early on Thursday afternoon ahead of the regular press conference held by its president, Mario Draghi, to discuss the central bank's interest rate decision. | An official statement from the ECB is expected early on Thursday afternoon ahead of the regular press conference held by its president, Mario Draghi, to discuss the central bank's interest rate decision. |
| The Irish government said that it was optimistic it would be able to come to an agreement with European officials | The Irish government said that it was optimistic it would be able to come to an agreement with European officials |
| Irish Prime Minister Enda 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. | Irish Prime Minister Enda 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. |
| 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. |
| If the Irish Republic gets ECB approval for the liquidation, IBRC's loans would 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. | If the Irish Republic gets ECB approval for the liquidation, IBRC's loans would 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. |
| 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 would lose their jobs, although the government said the majority of these are expected to be rehired by Nama. |