The False Economist

Wednesday, February 6, 2013

Irish Government to Liquidate with Extreme Prejudice

Well, something interesting appears to be happening.

The Irish Government is to propose liquidating the IBRC, formerly Ned Stark's winter fund Anglo Irish Bank, with rumours that emergency legislation is to be brought before the Seanad and Dáil this evening as Governor of the Irish Central Bank presents this proposal to the ECB.

The main point of this is to cease the annual €3.1bn payment of interest on the €28bn promissory note used to bail out the world's most evil bank (excluding all the Swiss ones). A more long term bond will come into play and payments will be made back more gradually over a longer period of time.

RTE have the story here. With additional reports from Bloomberg and Reuters.

Minister Noonan is expected to make a speech in the Dáil at 9pm this evening.

This still poses several questions:

  • How long has this been Plan B for the government after their initial proposal to park the interest for 15 years was shot down ?
  • Were the ECB expecting this ?
  • Will this have any effect on Irish bonds ?
  • What kind of timeline on interest payments can we now expect ?
  • What's a Magdalene laundry ?
Put on the popcorn, get out your beer hat things are gonna get interesting*.

*= by which I mean unclear, confusing and technical.