Prom deal: live updates
Live updates on the Irish government's deal with the European Central Bank on restructuring the debt of the former Anglo Irish Bank.
**17.50:** "There is an element of brinkmanship about the deal but there is no harm in that if it enables Ireland to finally emerge from under the cadavers of its failed banks" This is what the Financial Times said about today's news: for this and other external views see [here](http://www.businesspost.ie/#!story/Home/News/Prom+deal%3A+the+view+from+overseas/id/19410615-5218-5113-e48d-0c0b83533974).
**16.55:** Irish bond yields have dropped on today's news: the five-year bond yield has fallen 15.9 points to 2.9 per cent. The 2020 bond yield has dropped 12 points to 3.9 per cent.
**16.43:** €1 billion less will be taken from families each year as a result of the prom note deal, says Noonan. "We didn't ask for a writedown; it was pointless," he says.
**16.40:** Moody's tells Bloomberg the deal on former Anglo debt is "reassuring", says Ba1 rating remains appropriate.
**16.38:** Minister for Finance Michael Noonan is speaking: "The promissory note is gone".
Public expenditure minister Brendan Howlin praises Noonan's skill in delivering the deal, adding: "An average maturity of 34.5 years gives us the space to get back into the markets with confidence."
**16.30:** Here's more of what Olli Rehn said:
"Market conditions for Irish bonds have been steadily improving and confidence growing. Ireland is on track to exit from the EU-IMF programme as planned. The Commission stands by Ireland and its people and supports them in this objective. In this context, the major steps taken by the Irish authorities regarding the Promissory Notes should further boost confidence and help to facilitate a successful outcome."
**16.25:** Economic and monetary affairs commissioner Olli Rehn has said Ireland's debt plan should boost investor confidence. His comments were reported by Bloomberg News.
**16.23:** Ireland's central bank governor Patrick Honohan has told news agency Reuters he's satisfied with the "arrangement the government has made about the IBRC". He also said the deal was "very far from monetary financing."
**16.16:** Government press conference has been delayed, but should start soon.
**16.00:** Minister for Finance Michael Noonan and Public Expenditure Minister Brendan Howlin had been due to address press conference on promissory notes shortly; but event appears not to be taking place.
**15.42:** NAMA issues statement to say it's been directed to establish a special purpose vehicle (National Resolution Ltd, or NRL) to acquire a floating charge over certain IBRC assets. As consideration for the floating charge, NAMA will issue to the Central Bank new Senior Bonds.
It also said: "In the period to mid-2013, the Special Liquidator will seek to value and sell the secured underlying assets subject to the floating charge. After the sales process conducted by the Special Liquidator has been completed later in the year, NAMA will acquire the unsold loans in the IBRC loan portfolio in addition to the proceeds of any asset sales conducted by the Special Liquidator during the sales process."
NAMA chairman Frank Daly said: “NAMA is fully committed to managing the new responsibilities which have been delegated to it by the Minister and to realising the maximum possible return for the taxpayer from the portfolio that it is due to acquire later in the year”.
**15.40:** If anyone missed the Taoiseach's speech to the Dail, the full text is [here](http://www.businesspost.ie/#!story/Home/News/FULL+TEXT%3A+Kenny's+speech+on+prom+notes/id/19410615-5218-5113-c844-bb2960884296).
**15.03:** "I commend this agreement to the house", says Kenny, to outbreak of applause.
**15:00:** Taoiseach: "The new plan will likely improve perception of our debt sustainability."
New interest rates will reduce Irish deficit by €1 billion a year.
"We have secured a vastly better deal on the cost of bailing out Anglo Irish Bank and Irish Nationwide."
"The more Ireland is prepared to help itself, the more others will assist us."
**14:58:** Average maturity of sovereign bonds will be 34 years, maturity is up to 40 years. There will be a €20 billion reduction in market borrowing requirements in next ten years. Average interest rate will be just over 3%, compared to 8% on prom notes.
**14.54:** Kenny calls promissory notes an "onerous and unfair legacy", says talks are concluded with the European Central Bank. New arangement is "fairer and more sustainable".
**14.50:** Taoiseach Enda Kenny starts to address Dail.
**14.42:** Government plans press briefing at 4 pm. Michael Noonan to talk on revised promissory notes arrangement.
**14.40:** Fine Gael tweets that Kenny will address Dail "before 3 pm".
**14.30:** Taoiseach Enda Kenny is expected to address the debt issue today in the Dail.
**14.20:** The euro is now getting hit on financial markets versus most major currencies, after an earlier rally. Draghi's comments on downside risks to the economy are probable cause.
**14.10:** Draghi repeats that he does not want to comment on the "swap" that's taking place in Ireland. Suggests reporters ask the Irish government. "They have taken an action. That's it."
He adds that this is not the "last word" on the matter; this is what is being said today.
**14.05:** Irish government sources say they are not surprised by Draghi's remarks, this language was expected.
**14.00:** Here's the [full text](http://www.businesspost.ie/#!story/Home/News/FULL+TEXT%3A+Mario+Draghi+speech+at+ECB/id/19410615-5218-5113-b0bd-9702e2056193) of Mario Draghi's opening remarks today (no mention of Ireland).
**13.55:** Pressed on the Irish issue, Draghi repeats: "It's been Irish government and Irish central bank actions and we took note of these actions."
**13.52:** Draghi says no decision was taken on Irish debt at today's meeting but the ECB "took note" of what Ireland was doing. "There wasn't a decision to take," he said. "The governing council unanimously took note of the Irish operation and I will refer you to the Irish government and the Irish central bank for the details of the operation ... We took note of this."
**13.45:** Draghi says financial market sentiment has improved and there's been an improvement in business and consumer confidence, albeit at low levels.
Risks to the euro area remains on the downside, he says.
Inflation rates are expected to decline below two per cent in the coming months.
**13.40:** Mario Draghi begins with usual statement on interest rate decision.
**13.35:** Mario Draghi arrives for ECB press conference, slightly later than usual 1.30 start.
**13.15:** The Sunday Business Post understands that a deal on IBRC debt has been [agreed in principle](http://www.businesspost.ie/#!story/Home/News/ECB+and+Ireland+reach+deal+on+Anglo+debt/id/19410615-5218-5113-9faa-159007459620), subject to cabinet approval. The promissory note will be replaced with government bonds with an average term of 33 to 34 years leading to significant cash flow benefits to the Exchequer, reduced interest repayments and also help the budgetary sums over the next few years.
**12.59:** The ECB has left interest rates unchanged. Details [here](http://www.businesspost.ie/#!story/Home/News/ECB+leaves+interest+rates+unchanged/id/19410615-5218-5113-a17d-8dc5c6902212). Mario Draghi will explain the decision in a press conference at 1.30pm Irish time. Irish ears will be listening for what he has to say about a deal on Anglo debt with Ireland. As reported below, Reuters is citing sources saying that a deal has been done.
**12.43:** The European Central Bank and Ireland have reached a compromise on a long-standing dispute over the cost of servicing money borrowed for a failed bank, newswire Reuters has reported in the last few minutes. Details [here](http://www.businesspost.ie/#!story/Home/News/ECB+and+Ireland+reach+deal+on+Anglo+debt+-+Reuters/id/19410615-5218-5113-9faa-159007459620) as they unfold.
**12.35:** Bloomberg has reported that Ireland faces between €0.9 billion and €1.1 billion of costs from triggering of guarantee schemes at former Anglo Irish Bank, which is being liquidated. It cited the Department of Finance. The government faces further costs if Michael Noonan is required to make good any losses NAMA may incur on IBRC assets it is taking over.
**12.10:** There have been some reports that ECB president Mario Draghi will speak about the proposed Irish debt deal at 12.30pm Irish time. But the ECB press office has confirmed to us that Draghi's monthly press conference will take place at 1.30pm Irish time, as scheduled.
**11.45am:** The Anglo Irish Bank saga has run and run but one of the final official acts of the bank - now called IBRC - may have come in the last few moments in the form of its own “death notice”.
“On 7 February 2013, the Irish Bank Resolution Corporation Act 2013 (the "Act") was passed by the Houses of the Oireachtas providing for the winding up of Irish Bank Resolution Corporation Limited (the "Company"),” a statement from the now liquidated IBRC said.
“Pursuant to Section 4 of this Act, at 7.20 a.m. on 7 February 2013, the Minister for Finance (the "Minister") made an order appointing Kieran Wallace and Eamonn Richardson, of KPMG, 1 Stokes Place, St Stephen's Green, Dublin 2 as special liquidators of the Company, at which time the winding up process of the Company began. A copy of the order will be published shortly,” it concluded.
Rest in Peace.
**11.20am:** The Quinn Manufacturing Group has issued a statement saying that the liquidation of IBRC has no impact whatever on its business. IBRC had a minority shareholding (24.9 per cent) in the business and has no involvement in the management of the Group, it said. "Consequently this change has no implications whatever for our Company, for our employees, or for our dealings with our customers and suppliers. It is business as usual."
**11.05am:** The euro has approached a 14-month high against the dollar amid speculation that European Central Bank president Mario Draghi will signal optimism about growth today.
Draghi is due to address the press at 1.30 pm today, after an announcement on interest rates at 12.45 pm Irish time.
**10.40am:** A crucial meeting of the ECB's governing council is underway in Frankfurt at the moment. But Ireland's debt problems are not the only issues on the agenda, even if they are the most dramatic. Also up for discussion is the monthly decision on interest rates. Analysts expect that Mario Draghi will signal optimism on the euro zone economy and the ECB is expected to leave interest rates unchanged.
**10am:** All eyes are on Frankfurt, where the ECB governing council is meeting. It's president Mario Draghi is expected to pronounce on the deal proposed by the Irish government this afternoon. A Bloomberg report has suggested that the ECB may delay a decision today. Read the details of that report [here](http://www.businesspost.ie/#!story/Home/News/ECB+unlikely+to+decide+on+Irish+deal+today+-+report/id/19410615-5218-5113-718f-1ad6a2057123).
Daily Business Post journalists were up through the night covering a dramatic Dáil session. A report, and links to our other coverage of this, is [here](http://www.businesspost.ie/#!story/Home/News/President+signs+emergency+IBRC+bill+as+Ireland+looks+to+ECB+for+deal/id/19410615-5218-5112-7d96-b77363770962).
You can also read a quick rundown of the key developments up to 10am [here](http://www.businesspost.ie/#!story/Home/News/Prom+deal%3A+the+key+developments/id/19410615-5218-5113-5f4b-852645698785).
We will bring you updates throughout the day here as the story unfolds.
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