6/2/13
RTE News OnlineThe Dáil is debating emergency legislation which seeks to wind up IBRC, with the Seanad due to meet afterwards. IBRC Chairman Alan Dukes has said the board of the former Anglo Irish Bank has been stood down. The move is understood to be part of a Government proposal to replace the promissory note with a new financing arrangement. However, a spokesperson for the European Central Bank said talks on a possible deal on promissory notes were continuing in Frankfurt. Under the proposed deal the promissory note would be replaced with a number of bonds, which would have an average maturity of 27 years. The bonds would range in maturity from 25 years to 40 years.
23:54 Economist David McWilliams - @davidmcw: "Game, set,match to ECB.It gets everything it wants with new bond. We get more debt.Brings closer sov' default when bond bubble bursts."
23:40 The Irish Bank Resolution Corporation Bill 2013, which the Dáil and Seanad are due to debate, has been published.
23:16 The Dáil has been suspended until midnight to give TDs time to read the Government's emergency legislation on IBRC.
23:13 Enda Kenny has said that opposition TDs had been briefed on what was "a technical Bill". He said the Bill had to be passed tonight in order to safe-guard the assets of IBRC.
23:10 Sinn Féin's Gerry Adams has said that more time is needed to digest the legislation. People Before Profit Alliance TD Richard Boyd Barrett has said finance spokespeople were given a rushed briefing 15 minutes before the Dáil reconvened. He said the matter was too serious to be "rammed through in this manner".
23:08 Taoiseach Enda Kenny offered to adjourn the Dáil until 11.30pm to allow members to read the legislation, however the suggestion did not gain the agreement of opposition parties.
23:06 Fianna Fáil's leader Micheál Martin has said his party's members has not had time to read the Government's Bill. Mr Martin sought an adjournment of the House to allow for a preliminary reading of the legislation. He said it was extraordinary to expect people to vote on a Bill that they had not seen.
23:02 The Dáil has resumed to allow for the Government to put forward emergency legislation that will allow it to wind up the Irish Banking Resolution Corporation.
22:46 The Press Association says that a formal decision on whether the ECB has signed-off on Ireland's promissory note proposal is not expected until tomorrow afternoon.
22:43 The IBRC Bill 2013 was distributed to TDs through their pigeon holes in Leinster House shortly before 10.30pm. According to the Explanatory Memorandum, the aim of the Bill is to wind up the IBRC, end the exposure of the State to the IBRC, help to restore the financial position of the State and help to enable the State to re-establish normalised access to the international debt markets. It says that the Minister for Finance shall, after the legislation is passed, make a "Special Liquidation Order" to wind up IBRC and that after this Order is made, no person can apply to wind-up or appoint an examiner to any subsidiary of IBRC without the consent of the Special Liquidator.
22:37 Fine Gael TD Jerry Buttimer - @jerrybuttimer: "Hot off the press as Dail reconvenes pic.twitter.com/ySDQGO5h"
22:33 The Dáil has been suspended until 11pm, a half hour later than previously indicated.
22:32 A statement from the People Before Profit Alliance has said that Richard Boyd Barrett TD, along with other finance spokespersons, is about to be briefed on the Government's emergency legislation due to be put to the Dáil this evening.
22:31 Fianna Fáil leader Micheál Martin - @MichealMartinTD: "Unbelievably, we're minutes from the start of debate and still no detail on what we're to debate..."
22:20 Opposition sources are saying they still have no copy of the legislation and no briefing from Government, with the Dáil due to resume in ten minutes.
21:31 A Government amendment to the Technical Group private members motion on the promissory note has been passed by 88 votes to 44. The Government won the debate. Following the vote the Dáil has been suspended until 10.30pm, at which point the IBRC Resolutions Act 2013 will be put forward.
21:20 A Government motion for a late sitting of the Dáil went to a vote and has been passed by 86 votes to 44. TDs are now voting on the promissory note private members business.
21:12 The legislation due to be debated in the Oireachtas this evening will be the 'IBRC Resolution Act 2013'.
20:58 RTÉ's Europe Editor Tony Connelly - @tconnellyRTE: "ECB spokesperson continuing to say that "talks are continuing" on promissory note in Frankfurt, despite emergency Dail session #anglo #ecb"
20:51 The Dáil is due to sit for two hours and ten minutes from 10.30pm in order to pass emergency legislation relating to IBRC. The legislation will go to the Seanad at approximately 12.45am.
20:47 Government chief whip Paul Kehoe has said the ECB was seeking a proposal from Government and the leaking of some elements was unfortunate. In the face of these leaks, he said the Minister for Finance had taken steps to secure IBRC. Mr Kehoe said the Government was working extremely hard to secure a deal and it was optimistic that an arrangement agreeable to all parties could be found in the format of the current discussions.
20:46 President Michael D Higgins has just departed Rome for Dublin, in order to make himself available in the event of there being legislation to consider. He is travelling on the Government jet and intends to return to Italy tomorrow.
20:31 The Cabinet is due to meet at 8:45pm to discuss the terms of a deal on promissory notes ahead of special sessions of the Dáil and Seanad called to pass emergency legislation.
19:59 Government Chief Whip Paul Kehoe has confirmed to RTÉ News that the Dáil will reconvene at 10pm to consider the emergency legislation. Earlier, there had been uncertainty after indications from the ECB that a deal on Ireland's promissory notes might not happen tonight.
19:56 RTÉ Europe Editor Tony Connelly reports that a spokesperson for the ECB said talks on a possible deal on promissory notes were continuing in Frankfurt. RTÉ News understands there will be no announcement of any breakthrough tonight.
19:55 The now former chairman of IBRC has told RTÉ News that the board of the bank has been stood down. Alan Dukes said that the board has not been liquidated but has been stood down and designated persons from KPMG have taken control of the institution. As a consequence, Mr Dukes said he is no longer chairman of the bank.
19:51 President D Higgins turned up for his engagement as scheduled at the Villa Spada - this evening, despite rumours circulating that he would be required to cut short his official trip to Italy to return home urgently
19:49 Bloomberg's Bureau Chief Dara Doyle @daradoy *NOONAN SAID TO CANCEL ANGLO SPEECH AS ECB DELAY DECISION 19:44 RTÉ's Europe Editor Tony Connelly explains exactly what is a promissory note in a blog post published last March http://bit.ly/UAjE6s
19:43 RTÉ's Political Correspondent David McCullagh @mcculld "Peter Mathews tells #Dail it's "absurd" to give him 3 mins speaking time, as he's been studying #Anglo for 4 years."
19:40 The debate on the Technical Group's Private Members' Motion on the promissory note has resumed in the Dáil. Sinn Féin's Brian Stanley said there were no grounds for paying the promissory note while working people and children were suffering. He said he hope there was news on the promissory note tonight.
19:36 RTÉ's The Late Debate will have the latest on the liquidation of IBRC - What it means and the full economic and political reaction. Tune in to RTÉ Radio One from 10pm
19:35 From RTÉ Business Editor David Murphy @davidmurphyRTE "For all you asked: Yes, Ireland will still owe the money. The only benefit is that payments will be spread over a longer period." "Also, the payments will be interest only. The capital will be repaid at the end of the maturity of the bonds."
19:23 Bloomberg’s bureau chief in Dublin says a final ECB decision on an Irish plan may not come in the next 24 hours. Officials are said to want more time to weigh the decisions.
1910 The board of the former Anglo Irish Bank, now known as IBRC, is "liquidated as of now", its chairman Alan Dukes has told Reuters. "The board is liquidated as of now, the functions of the board are being taken over by KPMG," Mr Dukes said. KMPG's Padraic Monaghan has been given responsibility for running IBRC's board, but has not been appointed liquidator, a source familiar with the situation told Reuters. Staff at IBRC were informed of KPMG's appointment by email this evening. A liquidator is expected to be appointed imminently.
18:53 Independent TD Shane Ross (@Shane_RossTD) has tweeted: "Waiting news whether Dail sits late to liquidate Anglo.Our motion on Anglo has 90 minutes to go starting in 45 minutes.What will they say?"
18:52 Fianna Fáil Finance spokesman Michael McGrath said if speculation is correct and the Government is to strike a deal, its success would be measured by the impact on the general public. "People will want to see a difference in their pockets," Mr McGrath said. "They will want to see a difference on the high street. They will want to see a difference in the retail sector." He added: "The question is how will this impact on the Budget? I believe, and I've said this a number of times, a good deal could have a very tangible impact on the next budget. "The Government is looking to take €3.1bn out of the economy next year. A good deal would reduce that very substantially."
18:44 The bonds, which could replace the promissory notes, would range in maturity from 25 years to 40 years. It is expected there would be a deficit saving from 2014 onwards of about €1bn. The €3.1bn annual repayments due under the promissory note would be replaced with significantly lower interest only repayments.
18:42 The union representing workers at IBRC says it will seek an urgent meeting with the Minister for Finance and the liquidators. IBOA's Larry Broderick says around 800 people are employed by IBRC -mainly on permanent contracts. He said staff were "shocked" at tonight's developments.
18:38 Kieran Wallace of KPMG is poised to be named as liquidator to IBRC, formerly Anglo. It is understood a special manager would also be appointed to the bank. Under the deal the promissory note would be replaced with a number of bonds which would have average maturity of 27 years.
18:20 Fianna Fáil has said it has not yet been given any details of any emergency legislation to be passed by the Oireachtas, or on whether it is definitely going ahead. Finance Spokesperson Michael McGrath said they would have to look at the detail of any legislation before deciding whether to support it or not. Mr McGrath said they would have questions to ask, the most important being whether any deal eased the burden on ordinary people.
18:00 The Government plans to liquidate the Irish Bank Resolution Corporation, formerly Anglo Irish Bank, as part of changes to replace the promissory note with a new financing arrangement. It is reported Minister for Finance Michael Noonan will make a statement about the plans tonight. The new arrangements need the backing of the ECB's Governing Council, which is meeting in Frankfurt this evening ahead of a formal meeting tomorrow. Central Bank Governor Patrick Honohan, Ireland's representative on the council, will put a revised plan to his fellow central bank governors this evening, a source has said. The new arrangement should reduce the annual €3.1bn cost of financing the promissory note by pushing repayment of the principle out into the future. However, it would not reduce the total sum to be repaid.
No comments:
Post a Comment