That PROMISSORY NOTE thing .. update 2017

robut

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€500m of debt relating to IBRC is bought and cancelled by NTMA

The National Treasury Management Agency has bought and cancelled €500m worth of debt relating to the winding down of Irish Bank Resolution Corporation.

The bond formed part of the liquidation of IBRC - which was formed from a merger of Anglo Irish Bank and Irish Nationwide - and involved the NTMA issuing more than €25 billion worth of bonds to the Central Bank in return for its promissory notes.
NTMA bond deal takes redeemed Prom Notes tally to €8.5bn

The NTMA has cancelled another €500m of bonds linked to the liquidation of the former Anglo Irish Bank after buying them from the Central Bank.

The Central Bank will destroys the €500m it receives from the State.

Following the latest deal, €8.5bn of the €25bn of debt created as part of the liquidation of the Irish Bank Resolution Corporation (IBRC) in February 2013 has been redeemed and cancelled. The debt was created to replace the so-called Anglo Irish Bank promissory notes. The State pays to redeem the bonds, but will save money on future interest payments.

And for those like me who are trying to grasp this: From 2013:

Everything you need to know about the promissory notes, but were afraid to ask

I assume all this is good?

Im always warey with stuff like this .. feels like one of these fair ground tricks. One hand to distract while other is up to something :D

Anyway .. just thought I would do a new thread on this. Not much mention of it in our eagle eyed media of late bar RTE & INDO ..
 
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hammer

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Remember LENDAHAND had €3.5 billion outlay budgeted every year in Annual Budget ( for 10 years )

What a disaster that would have been trying to pay it.

Austerity would have been a lot worse.
 

robut

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Hayes writes to Draghi to allow for more QE purchases of Irish debt

“In March this year, NTMA data showed that, in total, the ECB held €45 billion of the €121.6bn Irish Government bonds in issuance. However, this figure is skewed by the fact that due to the promissory note deal, these Anglo-Irish related bonds remain on the Central Bank’s balance sheet and are calculated as part of the ECB’s holding of Irish debt.

“The Irish Central Bank took €25 billion worth of long-term Anglo-Irish bonds onto its books in February 2013 as part of the promissory note deal. It has since sold off about €8 billion of the bonds but the outstanding amount is still over-inflating our exposure to the ECB.

“There needs to be some solution to this issue.
“Whatever the future of the QE programme beyond 2017, it must be ensured that the programme is wound up properly with all participant Eurozone countries fairly treated. If the ECB stops purchasing Irish bonds while the programme is ongoing, this could send a very negative signal to the markets.”
 

hammer

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Can we put SF IRA AAA PBP Solidarity ULA into Government for a few weeks and get them to renounce all the debt ?
 

Lambic

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€500m of debt relating to IBRC is bought and cancelled by NTMA



NTMA bond deal takes redeemed Prom Notes tally to €8.5bn




And for those like me who are trying to grasp this: From 2013:

Everything you need to know about the promissory notes, but were afraid to ask

I assume all this is good?

Im always warey with stuff like this .. feels like one of these fair ground tricks. One hand to distract while other is up to something :D

Anyway .. just thought I would do a new thread on this. Not much mention of it in our eagle eyed media of late bar RTE & INDO ..
This is the "burning" of money, as discussed before.

We issued approx 30bn of debt, to repay all the depositors and bondholders in Anglo / IN / IBRC.

We then did some refinancing, whereby the bonds ended up as an asset on the CBI balance sheet.

Then NTMA has been buying the bonds from the CBI, maybe 500m each time, and then cancelling the bond.

This means in effect "burning / spending / destroying" 500m with nothing to show for it.

This is the actual implementation of the cost of rescuing Anglo /IBRC.
 

hammer

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Anglo / INBS and their FF buddies.

Jaysus if we only knew why BIFFO was playing golf with some of the Anglo directors.

€30 BILLION.

Vote FF 1,2,3 for more of the same
 

Congalltee

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Michael Noonan's legacy is this cancelling €500m asset every once in a while, because he nationalised the Anglo debt from PN into being legally enforceable against the State. Bravo.
 

hammer

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Jaysus when you think FF and Lendahand had to guarantee €440,000 million in bank debt.

Votail FFail 1,2,3
 

mr_anderson

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Remember LENDAHAND had €3.5 billion outlay budgeted every year in Annual Budget ( for 10 years )

What a disaster that would have been trying to pay it.

Austerity would have been a lot worse.

Or we could have burnt all bond & shareholders.
Like any normal capitalist system.

When buying financial instruments, everyone knows the risks involved.
Especially on the bond front, it's rare a member of the public just buys one.
It's primarily the 'experts'.
 

hammer

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Or we could have burnt all bond & shareholders.
Like any normal capitalist system.

When buying financial instruments, everyone knows the risks involved.
Especially on the bond front, it's rare a member of the public just buys one.
It's primarily the 'experts'.
We could have.

We had a €25 billion annual deficit.

Our bonds were at 15% or so.

The IMF were on the horizon.

Why didnt you give Lendahand a shout.
 

HarshBuzz

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Samson; please explain all (and why this is good news)!
 

blokesbloke

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Can we put SF IRA AAA PBP Solidarity ULA into Government for a few weeks and get them to renounce all the debt ?
Yes, if you and other FGers vote for them at the next election. Off you go and ask Leo to call one.
 

hammer

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If SF IRA got an overall majority they would probably still look for reasons not to go into Government :)
 

brughahaha

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Anglo / INBS and their FF buddies.

Jaysus if we only knew why BIFFO was playing golf with some of the Anglo directors.

€30 BILLION.

Vote FF 1,2,3 for more of the same
And your precious FG continued his policies without interruption ya yapping mutt
 

cobhguy

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This is the "burning" of money, as discussed before.

We issued approx 30bn of debt, to repay all the depositors and bondholders in Anglo / IN / IBRC.

We then did some refinancing, whereby the bonds ended up as an asset on the CBI balance sheet.

Then NTMA has been buying the bonds from the CBI, maybe 500m each time, and then cancelling the bond.

This means in effect "burning / spending / destroying" 500m with nothing to show for it.

This is the actual implementation of the cost of rescuing Anglo /IBRC.
The bank was bailed with that credit. We gave an iou. We now replace that iou with cash. Its the iou for 500 million that is destroyed.
 

gerhard dengler

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Or we could have burnt all bond & shareholders.
Like any normal capitalist system.

When buying financial instruments, everyone knows the risks involved.
Especially on the bond front, it's rare a member of the public just buys one.
It's primarily the 'experts'.
I agree.

Capitalism created the problem.
Capitalism should have been permitted to solve the problem.
 

mr_anderson

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We could have.

We had a €25 billion annual deficit.

Our bonds were at 15% or so.

The IMF were on the horizon.

Why didnt you give Lendahand a shout.
Believe it or not, I emailed him at the time.
Got the usual 'The minister is taking what you say under consideration' bullshít reply.
 

ionsniffer

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Or we could have burnt all bond & shareholders.
Like any normal capitalist system.

When buying financial instruments, everyone knows the risks involved.
Especially on the bond front, it's rare a member of the public just buys one.
It's primarily the 'experts'.
Nah. Name people suffer instead. Cowards our politicians. Scum.
 

Taxi Driver

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Surely all that matters is the interest cost of the borrowing?

The money was borrowed from the Central Bank to repay the Anglo creditors in 2010/11. Now the Central Bank is being repaid with money the NTMA have borrowed from debt markets. We still owe the same amount so any differences have to be driven by the interest cost and with very low interest rates now...
 


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