Saturday, March 03, 2012

Ireland, its referendum and €31Billion of promissory notes on Anglo Irish

The referendum on the EU Fiscal Traety is now expected in June for Ireland. Already the Troika is showing signes of weakening on the unsustainable debt burden placed on future generations of the Irish people in being expected to pay off the creditors of Anglo Irish bank, as may be read in this passage quoted from this morning's Irish Times:

The comments by the IMF, made by the fund’s team leader on Ireland, Craig Beaumont, were the strongest indication yet from a member of the troika that a restructuring of the bonds would happen.
He said easing the promissory note burden would make Ireland’s overall debt position more sustainable.
Mr Beaumont gave no indication of when a deal would be reached, but said the first repayment on the notes, due at the end of the month, was not a “hard deadline”. The promissory notes, with a face value of just under €31 billion, account for just under one-fifth of total gross public debt (€164 billion).
The IMF estimates that the running of large though shrinking budget deficits in the coming years will push public debt to €206 billion by 2015. A deal on the promissory notes could keep public debt significantly below that level.

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