COPENHAGEN (MNI) – A European Central Bank spokesman said Thursday
that the ECB “takes note” of the Irish government’s intention to replace
a E3.1 billion promissory note payment with long-term debt.
Michael Noonan, Ireland’s finance minister, said earlier Thursday
the government would settle the March 31 payment of the notes through
the delivery of a long government bond rather than with cash.
In a statement read by one of its spokesmen, the ECB said, “as
Ireland strives to regain market confidence, it is of utmost importance
that the commitments of the Irish state are met in line with standing
contacts and agreements.”
The statement added: “We certainly expect that also in the future
the promissory notes will be [serviced] according to the schedule to
which the government has committed itself.”
The deal announced Thursday represented a victory for Irish
authorities who had been trying for months to persuade a reluctant ECB
to all allow it to restructure the promissory note debt.
In its statement, the ECB urged Irish banks to reduce their
reliance on central bank funding.
“The Eurosystem has provided unprecedented support for the Irish
banking sector. The objective should be to reduce over time the reliance
of Irish banks on central bank funding and in particular on emergency
liquidity assistance,” the ECB said.
–Paris newsroom, +33142715540; jduffy@marketnews.com
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