Fine Gael Meath East TD, Regina Doherty, has today (Thursday) welcomed the deal struck by the Government on the Anglo promissory notes, saying it is a hugely positive step forward for the Irish economy and the Irish people. Deputy Doherty added the deal would significantly ease the debt burden at a time when the Irish economy is trying to recover.
“The deal announced today by the
Taoiseach in the Dáil is a very important step forward. By liquidating IBRC,
formerly Anglo Irish Bank, and replacing the promissory notes with bonds, we
have essentially swapped a high cost, short-term loan, with a long-term,
interest only mortgage. Over the next decade, the Government will have to borrow
€20 billion less, thanks to this deal. On top of this, it will have a positive
impact on the Budget for next year, which means there will be fewer new taxes
and spending cuts.
“I have been
amazed by the way in which Sinn Féin representatives have tried to misrepresent
this deal, attempting to dampen down the positive impact it will have on the
Irish economy. It is true that we won’t have to pay any of the actual debt until
for another 25 years, in 2038. The final payment will be made in 2053. And over
those years, inflation and economic growth will greatly reduce the value of the
“The Finance Minister has
explained what the deal means by way of an anecdote; he paid about £3,000 for
his house in Limerick in the late 1960s. At the end of his mortgage, 25 years
later, one month’s pay check would have paid for his entire house. By stretching
the debt out over such a long period, we are greatly diminishing its value.
“As well as cutting our
borrowing requirements by €20 billion and allowing us to introduce fewer taxes
and spending cuts in the years ahead, this deal also gives a significant boost
to Ireland’s prospects for economic growth. It should make it easier for Ireland
to get back into the markets, a key step in our economic recovery.
“This deal is one essential
element of the Government’s plan to improve the disastrous bail-out deal we
inherited from the Fianna Fáil. Today, the Government has delivered a vast
improvement to that deal. The toxic financial, political and social legacy left
by the previous government has now finally been dealt with. We have finally
closed the chapter on Anglo Irish Bank, and the infamous promissory notes are no
more. I would like to pay tribute to Minister Noonan for his tireless work in
these negotiations. He has truly delivered for the Irish people.
“There is still an awful lot of
work to do. Today we have dealt with the €31 billion promissory notes. Now, work
will continue apace on delivering a further deal on breaking the link between
banking and sovereign debt, as we continue to bring about savings for the Irish