Ireland

Finance Minister Michael Noonan has told RTÉ that the Government is currently in discussions with European authorities to reduce Ireland’s debt burden from the banking crisis, thejournal.ie reported. Speaking on The Week in Politics, which will be broadcast later tonight, Noonan confirmed negotiations on a major restructuring of Ireland’s banking debts were already underway. The talks are not only focused on Anglo Irish Bank promissory notes but will also take in loss-making tracker mortgages at AIB and Bank of Ireland, he said.
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Ireland 'May Need' Second Bailout

Ireland is likely to need a second bailout when its current aid program ends, rating agency Moody’s warned today, the Irish Times reported. In its weekly credit outlook report, Moody’s also warned a No vote in the upcoming fiscal treaty referendum would bar Ireland from receiving further funds under the European Stability Mechanism (ESM). The agency predicted the Government would have to rely on the ESM for additional funding after the existing bailout program expires in 2014.
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Talks on restructuring the €31 billion in promissory notes are well advanced, according to Craig Beaumont of the International Monetary Fund. The head of the IMF’s Ireland team said much consensus existed among his organisation, the European Commission, the European Central Bank and the Irish Government on restructuring the notes. An agreement on the €31 billion of promissory notes, which accounts for just under one-fifth of total public debt of €164 billion as of the end of last year, could significantly reduce the risk of the Irish State defaulting on its sovereign obligations.
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Ireland's gradual recovery from euro zone basket case to periphery pin-up faces a testing time after the government called a referendum on Europe's new fiscal treaty that will put austerity in the firing line, Reuters reported. Prime Minister Enda Kenny surprised parliament on Tuesday by announcing the vote, Ireland's fifth on Europe in 11 years. It will be first and possibly only plebiscite on a German-led plan for stricter budget discipline across the bloc.
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Loan impairments at Permanent TSB more than trebled last year on the back of rising mortgage arrears and tighter Central Bank guidance on provisions, the Irish Times reported. The bank said last night that thee had been a sharp rise in the number of mortgage loans that are in arrears for more than 90 days. At the end of last year, more than 11.5 per cent of mortgage loans were more than 90 days in arrears, up from 6.8 per cent at the end of 2010.
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Ireland to Hold Referendum on EU Treaty

The Irish government announced plans to call a referendum on the new European Union budget discipline treaty, a vote it—and the rest of the euro zone—had hoped to avoid, The Wall Street Journal reported. Irish Prime Minister Enda Kenny told Parliament that he had made the decision following advice given to his cabinet by Attorney General Maire Whelan. He said he would discuss the timing over the next few weeks. The Irish have a habit of rejecting EU referendums. They passed the Nice and Lisbon treaties only in re-run votes.
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Bankrupt businessman Seán Quinn appeared before the Commercial Court for the first time today urging permission to defend claims by Anglo Irish Bank that he has liability for some or all of €2.34 billion loans made to various Quinn companies, the Irish Times reported. Mr Quinn told Mr Justice Peter Kelly he was “a simple farmer’s son” who didn’t need much time to argue his entitlement to be represented in his family’s case against Anglo aimed at avoiding liability for the loans, and could be ready within a week or so.
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Court Rules In Favour Of Quinns

A significant Commercial Court ruling today means the family of bankrupt businessman Seán Quinn could avoid liability for loans of up to €2.34 billion if they prove claims Anglo Irish Bank made those loans to various Quinn companies for the unlawful purpose of supporting the bank's share price, the Irish Times reported. Legal sources believe the decision by Mr Justice Peter Charleton could have consequences for other cases.
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Treasury Holdings Challenges Nama

The High Court has begun hearing a challenge by Treasury Holdings against the National Assets Management Agency’s decision to appoint receivers to some of its property assets in Ireland, the Irish Times reported. The court was told today the agency made a “dramatic” decision last December to proceed with appointing receivers over assets of various Treasury Holdings companies without telling the developer which was then in advanced negotiations with investors.
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Contempt of court proceedings have been initiated against the bankrupt businessman Seán Quinn, his son Seán Quinn jnr, and his nephew, Peter Darragh Quinn, the Irish Times reported. The Irish Bank Resolution Corporation, formerly Anglo Irish Bank, yesterday filed a motion in the High Court seeking to have the three found in contempt of court for breaches of an injunction preventing them from moving certain assets. A spokesman for the Quinns said they rejected the allegations being made against them and would defend their position “vigorously”.
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