Ireland, its referendum and €31Billion of promissory notes on Anglo Irish
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.
Labels: Anglo Irish, EU Fiscal Treaty, Irish Referendum
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