Promissory note deal is historic step on Ireland’s road to recovery

Fine Gael Dublin Fingal TD, Alan Farrell, has welcomed the announcement by An Taoiseach, Enda Kenny TD, that a deal has been reached regarding the Anglo Irish and Irish Nationwide promissory notes and that budgetary adjustment for 2014 and 2015 will be €1 billion less.

“When this Government came into power we promised to secure a deal on bank debt. With this announcement we have delivered on that promise. This announcement represents an historic step on Ireland’s road to recovery.

“What was a high interest, short-term loan has been replaced by a cheap, interest only loan which can be paid back over 40 years. With the passing of time, inflation and the growth of our economy will diminish the impact of the repayments in comparison to our wider economy.

“The economic benefits in the long and short term will be significant. Spending cuts and taxes for 2014 and 2015 will be €1 billion less than previously set out. We will also have to borrow €20 billion less over the next decade as a result of this deal.

“We have also secured an average interest rate of just over three per cent, which is vastly favourable to the rate of more than eight per cent on the promissory notes. The money saved will be spent on public services, job creation and the restoration of our economy. The first tangible evidence of this will be at the announcement of next year’s budget when we there will be €1 billion less in taxes and cuts.

“The sorry saga of Anglo Irish Bank and the promissory notes has finally been put to bed.   The stain on our reputation has been removed and we can now move forward.

“As the Taoiseach has pointed out, we still have a long way to travel. The damage done to our economy by the last Government will take time to fix. What this deal does is to allow us to move forward and removes an economic millstone from our necks so that we can move forward.

“Enda Kenny and Michael Noonan deserve massive credit for today’s announcement which has come about as a result of two years of hard graft, relationship building, diplomacy and tireless determination. I believe that in bringing about this deal they have done their country a great service.”