Taoiseach rules out early restructuring of Anglo payments

TAOISEACH ENDA Kenny has ruled out an early restructuring of the €31 billion owed in promissory notes for the former Anglo Irish Bank.

“I will not . . . commit to a heightened expectation that this can be delivered in a fortnight or three weeks,” he said, adding that it was a serious matter for the country, the economy and the people.

“We will continue to work diligently, following the initiative taken by the troika when it undertook to produce a paper on the basis of the flexibility of what we have to repay with regard to the promissory notes.”

Denying media reports that a deal was already done, Mr Kenny said there was no timeline, and he would not set one. He could not speak for the governors of the euro zone central banks or the other elements of the troika. A great deal of intensive work was taking place on the issue of greater flexibility for Ireland in regard to payments it had to make. “Clearly, if that work is brought to a successful outcome, it will enable Ireland to deal more adequately with its deficit and make it easier for it to repay its debts.”

Fianna Fáil leader Micheál Martin said some Ministers were saying the negotiations on the promissory notes issued should be linked to the referendum on the fiscal compact treaty. In an interview in the Financial Times, Minister for Social Protection Joan Burton had said a deal would be helpful, while Minister for Transport Leo Varadkar said it would not be helpful to connect the two.

“By any objective criterion and with any sense of natural justice, independent of the signing of a treaty, a deal should and must be done, given that Ireland took the hit to protect the euro zone at a time when there was no European mechanism in place,” said Mr Martin.

Mr Kenny said he had noted the comments made in the Financial Times. The Minister involved, he said, was responding to a specific question asked by the interviewer. “I wish to make it clear that these matters are entirely separate.”

Independent TD Shane Ross suggested it was more than a coincidence that the Taoiseach was not giving a date for the referendum or for the solution the Government was going to find on the promissory notes. “It would be fair to draw a conclusion that one is dependent on the other,” he said.

Mr Ross said Minister for Communications, Energy and Natural Resources Pat Rabbitte had given an interview to the Wall Street Journal last month, stating the promissory notes issue would be done and dusted by March 31st. Mr Kenny said Mr Rabbitte had merely said he hoped it would be concluded by that date.

Insisting that it was not coincidental that a date had not yet been named for the referendum, the Taoiseach said 10 different dates had been thrown at him earlier in the day.