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Dublin: 6 °C Friday 24 May, 2013

ECB president: ‘Utmost importance’ that Ireland continues promissory note repayments

Mario Draghi expects Ireland to keep up its annual repayments of the promissory note, dodging questions about a larger deal.

Image: Markus Schreiber/AP

THE PRESIDENT of the European Central Bank has reaffirmed his expectations that Ireland meet its schedule for the annual repayment of promissory notes.

Speaking to reporters in Frankfurt, Mario Draghi said it was “of the utmost importance” that Ireland meet the commitments it had already signed up to under the terms of the promissory notes given to the Central Bank of Ireland by the former Anglo Irish Bank.

Draghi said the repayment was vital “as Ireland strives to regain market confidence – and frankly I have very few doubts [that] it will exceed”.

“We expect that future repayments be met according to the schedule to which the government has committed,” he said.

The Italian sidestepped questions on whether the ECB had approved the Irish government’s decision to meet the 2012 repayment of the promissory notes, worth some €3.06bn, by issuing a government bond.

“We take note of this – after all, it’s a completely Irish operation here, the ECB is not part of this,” he said, before dodging further questions on the Irish government’s efforts to restructure the overall promissory note setup.

The ECB president added that he was “fully confident” that Ireland would vote in favour of the Fiscal Compact referendum, and remarked that the Irish people and government “deserve to be praised for their efforts” in getting the government back on track.

“The Irish government and the Irish people have undergone a very, very hard and very harsh fiscal consolidation programme,” Draghi admitted.

Draghi’s comments came after the ECB left its main interest rates unchanged for the fourth successive month, following the monthly meeting of its governing council.

The bank said economic growth in the eurozone now appeared to have stabilised, and would undergo a moderate recovery over the course of the year, while inflation in the bloc would remain above 2 per cent for the rest of the year.

Read: German central bank ‘to stop taking Irish bonds as collateral’ >

Explainer: What’s reportedly being discussed in talks on Ireland’s bank debt?

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Comments (47 Comments)

  • FU*CK OFF.

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  • Well the Irish government seems to want to park all this until 2025 when all the current ministers will be mostly dead or retired abroad, and the country is full of destitute small business owners and the unemployed.

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    • Adam, It is not parked until 2025 – you are believing the government spin! The money will have to be repaid to bank of ireland NEXT YEAR. It is only put off for a year

      Trinity college professor Karl Whelan was on Vincent brown and explained the whole thing. he said dont believe a word the politicians are telling you – I never did anyway!

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    • That’s correct Patrick and the Irish taxpayer gets treated to a €80-90 million bill for same.

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    • Yes, sean , Magician Noonan has made the nasty E3 billion disappear right in the middle of the referendum campaign! But it will magically reappear next year, after he has got his YES vote!

      Now you see it, now you dont economics, is permormed at the dept of finance and we are the gullible audience clapping the wonderful noonan and his wonderful feats

      That E80 billion you mention, could nearly cover the household charge

      Mr Draghi, these are Seanie’s debts – they are not mine

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  • ECB Central Bankers say one thing – politicians looking for YES votes in referendums say another!

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  • How strange, they ‘insist’ things to the Irish, but ‘offer’ things to the Greeks. Any ideas people??

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  • “Utmost Importance” is code for Ireland continuing to bailout the mistakes that have been made at European level.

    Who are we to believe- Paul Krugman, a Nobel prize winning economist or Mario Dragi, a technocrat who represents the bankers who got us (all of Europe) into this mess. Enda & Co. bowtow to idiots like this guy as the sell more of our sovereignty to the lowest bidder, putting Irish households in debt and unemployment to do so.

    This fiscal compact only serves to legalise and legitimise the ECB regime and opes the door for more of their cock-ups, I for one will be voting NO.

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  • Mario Draghi sounds scared. I wonder why….

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  • “Utmost importance” to whom?

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  • So it’s Franfurts’ way yet again, where are you hiding Mr. Gilmore?

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  • This is the note that were not actually obliged to pay and is it this note that has this country on its knees no jobs no money anywhere and millions sloshing around the banking system 6 businesses a day closed down since January and they want us all to open up new business while the banks won’t give you a red cent they are clueless

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    • Exactly clueless!!!

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    • Fagan's 04/04/12 #

      Shure wasn’t Brian Lenihan a great patriot to be able to get us carrying this debt, while at the same time changing the laws so that the bankrupts who had more than 5mn in Anglo were able to take it out, rather than having it frozen like the rest of us if we were in that position. What a great fupping man.

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    • no there not clueless just very corrupt all these banks are all bust and they shove it over on to the middle class and the poor this is the way a democracy works ,if anglo had been let go bust it would have taken the political elite judges barristers with it they would all have had to resign

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  • Of course he expects us to pay. Why would he expect anything else when Enda & Co are forever saying that we’ll pay up.

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    • No one expects us to pay up, everyone knows a deal will be announced 7-5 days before the referendum to give the gov a boost.

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    • Someone obviously forget to tell this man about the “deal” that he “agreed” to with Enda

      Maybe he was out of the room having a cup of tea when the “deal” was done

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    • That the Fiscal treaty? You know the one which only needs 12 signatures and which they don’t need us to sign. If you’re going to build up some conspiracy theory perhaps you’d explain why they need us to sign it because I can’t see any reason.

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    • Well Gary according to the ECB and EU it is very important we sign up as it will send a ‘signal’ to the markets that we are serious. Doesn’t seemed to have helped Spain today when they went to the markets. But sure never mind the guy from the ECB must know best.

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    • Kerry. Sure I imagine it will send the right signals to the markets. The point I’m making though is if we send the wrong signals to the markets by voting No we’re the ones who get hurt not the EU generally. I’m trying to see a reasons why they would need us to vote yes as the little conspiracy above suggests.

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    • We will get hurt if we vote no? How do Gary? And I thought the EU was a union not a two tiered system!!!!
      It’s a NO from me wether they need it or not. And.,., why give us a vote at all if they only need 12 sigs?

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    • Even though only the 12 signatories are needed, it’s privately feared Ireland may not ratify it and we don’t it would also send a signal that the whole of Europe isn’t moving in step. Germany et al privately very much want us to sign up for this to give the appearence of a united front so that it doesn’t come under threat from the markets itself.

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    • What do you expect Draghi to say? The question is what the best course for Ireland is. I don’t care what these guys have to say, they have a vested interest in their position.

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    • Fagan's 04/04/12 #

      The probable next French PM has said he is going to re-negotiate while the Conservative PM has already ignored the EU’s targets and set ones for next year that ignore this treaty as well.

      Economists and politicians across the globe decried this treaty as a political stunt related to German and French electoral politics and how it offered nothing in the way of resolving the financial crisis.

      Every country in Europe (bar Finland) is going to have austerity imposed on it, while also expecting to export and grow its way out.

      This treaty is an absolute disaster and threat to the economies of Europe.

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    • @Tony Skillington. So it would be nice if we vote yes but there’s no real excitement if we don’t. So no reason to push us.
      @Fagan’s. Let’s be clear about this, we will be having austerity whether we vote yes or no. Which economists says it’s a disaster? Start with the Irish ones as they’d have our interests nearer their hearts.

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    • Draghi is reinforcing the double standard treatment that Ireland is being dealt by the EU/ECB. Namely, Irelands banks get into bother and the taxpayer is forced to bail them out. Europes banks get into bother and the ECB provides €1 trillion in liquidity to the banks.
      Draghi has falsely claimed that the promissory notes has nothing to do with the ECB. The funding for the promissory notes was provided by Irelands central bank and it is the ECB that is insisting these funds are repaid.
      Attached article offers 6 reasons why Ireland should vote No the fiscal compact referendum.
      http://www.realitytimes.org/?p=1598

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  • Not only will I vote NO i will avidly campaign for a No vote.

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  • Draghi’s comments say two things: 1) a deal is not going to come for the other 27bn(before interest) to be paid for Anglo promissary notes that don’t come under the guarantee. In other words,we can take Enda and Noonan &co to their word that we have not and will not look for a write down,despite it not being our debt. The deal last month confirmed the nationalising of the private bank debt.

    2) Draghi’s specific comment “It’s a complete Irish operation. The ECB is not part of this” confirms that the “deal” last month was simply a costly shuffling around of our money/debt between our sovereign accounts,NAMA and Bank of Ireland.

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  • Bankers are scum and this is the head of the crime syndicate. He should arrested for being a traitor to all that’s good about humanity. Its time people started to look at the banking industry in the same way as the addictive drug industry. Teach your kids that bankers can’t be trusted. That they aren’t there to help you. They want to get you hooked on their product, which is debt so they can own you and the fruits of your labour. They are scum. If you are working in a bank you are part of the problem. A low level debt pusher. Sorry if this upsets people. I am not religious but Jesus was said to have warned us about the money changers. Heed that warning. They are the source of all mans problems.

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    • You been turned down for a credit card or something?

      I know plenty of decent, hard working and low paid bank staff who do not go to work to put up with this sort of ill judged abuse from people like you.

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    • Simon they are debt pushers. They work for a financial system that is a a criminal fraud. There is no such thing as a nice drug pusher and its the same for banking. And no never been turned down for credit. If I had a choice I would make fiat money illegal as it is the sole reason for the ills of our world.

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  • After being robbed today by FG’s policy of insuring the wealthy against austerity and hardship……..(paying 660 euro for a years tax on a 9 year old van whereas the millionaire businessman beside me in the queue pays 160 euro by virtue of driving, and having the wealth to buy a 2012 lexus)………. and after reading this I shall be beaming maniacally as i force the pen down on the NO box on this upcoming German scribed austerity treaty.

    F**K you ECB and FG/labour.

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  • Vote no – simple. The Politicians will soon realise that their high earnings are gone, also the kick backs from the followers are gone, and they too will need to live on €30 per week. A lot of people are surviving on €30 per week right now.

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  • Another nice pat on the back. If we got a € for every pat on the back we would have this debt problem fixed in no time.

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  • Would it be physically possible to have a group of intellectuals brought together, to draft up a new constitution and new plan for this country and then overthrow the current government and tell ‘Europe’ to piss off?

    This is not a joke, is this possible? It’s broad/basic, but just a suggestion.

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  • Yes Sir three bags full Sir. Blah, blah , blah, We obey you Master.

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  • D Moylan 04/04/12 #

    This guy dragi is a drag, HE should get with programme?

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  • On this day the 18th of April 1949 Ireland officially left the British Commonwealth and became a Republic.
    We have our new European Masters in town to make sure the plain people of Ireland have no say in their own Country’s Future.
    I suggest we Vote No

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