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Gov rush through IBRC law, no ECB deal

Wednesday, February 06 23:26:09

Finance Minister Michael Noonan tonight introduced legislation to wind up IBRC - formerly Anglo Irish Bank - moving its assets and liabilities to NAMA but with no deal done with the ECB.

IBRC chief Alan Dukes has confirmed that the Minister has stood down the bank's board while it is understood President Michael D Higgins is on his way back from Italy to sign in the new law.

KPMG's Padraic Monaghan has been given responsibility for running IBRC's board, but has not been appointed liquidator, a source familiar with the situation told Reuters.

It is also understood that a leak this afternoon - possibly coming from the ECB - precipitated the rush to legislation.

A vote has been delayed amid uproar from opposition parties, angry that the legislation is not being given sufficient time for debate.

It is understood that the promissory notes used to pay off lenders to the failed Anglo Irish Bank and Irish Nationwide amounting to E31 billion will be transformed in to a Government bond with a maturity of 20 or even forty years.

What is also not clear is the ECB's position but seem likely that no deal has been done with the ECB on the promissory notes.

A spokesperson for the ECB has told RTE News that talks on a possible deal on Anglo promissory notes were continuing in Frankfurt.

It is believed that the Government's hand has been forced to prevent a potential flight by IBRC bondholders in the morning.

Staff at IBRC were informed of KPMG's appointment by email this evening.

Under the Government's plan, IBRC's assets would be transferred to the National Assets Management Agency.

The promissory note would be replaced with a number of bonds, which would have an average maturity of 27 years.

The bonds' maturities would range from 25 to 40 years.

The E3.1bn in annual repayments due under the promissory note would be replaced with significantly lower, interest-only repayments.