Bloomberg News

ECB Says Rodriguez-Palenzuela to Become Ireland Troika Officer

April 11, 2012

The European Central Bank is to appoint Diego Rodriguez-Palenzuela as its lead official in so- called troika negotiations with Ireland.

Rodriguez-Palenzuela, currently head of the Frankfurt-based central bank’s capital markets division, will take over as the ECB’s head of mission to Ireland from current troika representative Klaus Masuch after the end of the next review mission to the country, which is due to start on April 16.

“Rodriguez-Palenzuela will take over at some point after the review is completed,” ECB spokesman William Lelieveldt said yesterday. Masuch will continue to represent the ECB in troika talks with Greece, he said.

The troika consists of the ECB, the International Monetary Fund and the European Commission. It makes quarterly reviews of the three euro-area nations receiving international bailouts -- Ireland, Greece and Portugal.

Ireland has been seeking help from its European partners since September to refinance about 30 billion euros ($39.4 billion) of so-called promissory notes used to rescue former Anglo Irish Bank Corp. and Irish Nationwide Building Society, which the state seized, merged and rebranded as Irish Bank Resolution Corp.

Finance Minister Michael Noonan said there is a “coalition of interests” between the government that the ECB to find a way to reduce the costs associated with the promissory notes and to wean IBRC off emergency borrowing from the Irish central bank, the Irish Times reported April 6, citing an interview.

As part of a broader deal, the government also plans to move loss-making assets, mainly mortgage loans that track the ECB’s key rate, out of some other state-controlled banks.

To contact the reporter on this story: Jeff Black in Frankfurt at jblack25@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net


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