D-DAY IS LOOMING for the payment of €3.1 billion in bank debt. The Government had hoped to win EU agreement to delay the controversial payment, due on Saturday, but at the time of going to print, no official progress had been announced and time is now running out.

The money must be repaid under an EU- backed arrangement under which Ireland is recapitalising the former Anglo Irish Bank and Irish Nationwide Building Society with IOUs known as promissory notes. Minister for Finance Michael Noonan indicated that negotiations were under way with the ECB to make arrangements for the repayment of the loan over a longer time-frame and at lower interest rates.

However it is believed now that the restructuring of the notes is unlikely to be finalised before the March 31st deadline. One alternative being considered is a payment-in- kind to delay the cash payment, but unless Noonan pulls a rabbit out of the hat at the last minute, it looks as if the Government will have little choice but to cough up the full amount this time around.