ECB debt deal gives Ireland glimmer of hope

Matthew Turner
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Agreement should be followed by a positive credit rating action.

Ireland’s debt deal with the ECB offers scope in reducing the country’s borrowing costs and alleviates the country’s high debt burden in the short to medium term, claim ECR experts.

The deal in effect wipes off the Irish exchequer around €3.1 billion of annual promissory note repayments, relating to the Irish Bank Resolution Corporation (IBRC). The promissory notes will be replaced by long-term government bonds, with maturities ranging from 27 to 40 years.

The liquidation of the IBRC allows the government to restructure the country’s bank bailout costs,...