Bloomberg News

Irish Face ECB Resistance on Bank Burden Cut, Irish Times Says

March 09, 2012

Ireland’s government is facing “strong resistance” from the European Central Bank in talks to cut the burden of bailing out its financial system, the Irish Times reported, without saying where it got the information.

Ireland is seeking European assistance to refinance about 30 billion euros ($40 billion) of notes that it used to rescue the former Anglo Irish Bank Corp. The ECB believes the government has other avenues to improve its finances including cuts to public sector pay and welfare payments, the Dublin-based newspaper reported.

The ECB is arguing against a delay in the payment of 3.1 billion euros on Anglo Irish’s promissory notes due this month, the newspaper said. Such a move would damage the government’s credibility before a planned return to international markets in the ECB’s view, the Irish Times said.

To contact the editor responsible for this story: Finbarr Flynn at fflynn3@bloomberg.net


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