Irish Said to Prefer Bonds Over ESM to Refinance Anglo Irish
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Irish authorities now favor using government bonds to refinance the rescue of the former Anglo Irish Bank Corp., easing funding pressure on the state over the next decade, according to two people familiar with the matter.
Under a plan being weighed by officials, Enda Kenny’s government would inject as much as 40 billion euros ($52.4 billion) of notes of as long as 40 years in maturity into the bank, said one of the people, who asked not to be identified because the talks are private. These may be used as collateral for European Central Bank funds, replacing 30 billion euros of so-called promissory notes used for the bank’s 2010 bailout.