Bloomberg News

ECB May Seek More Time to Weigh Irish Plan on Precedent Concern

February 06, 2013

ECB May Seek More Time to Weigh Irish Plan on Precedent Concern

A file photo shows a workman removing the Anglo Irish Bank Corp. logo from the bank's former headquarters in Dublin during April 2011. Photographer: Aidan Crawley/Bloomberg

European Central Bank policy makers may want more time to weigh a proposal presented by Ireland today to restructure the cost of bailing out former Anglo Irish Bank Corp., according to a person with knowledge of the matter.

A decision is unlikely within the next 24 hours as some members of the ECB’s governing council want to discuss the blueprint with their own central banks first, said the person, who asked not to be identified, as the matter is private.

Some policy makers are concerned that the Irish proposal could set a precedent in the euro area and needs to be weighed carefully, the person said.

A spokeswoman for the ECB in Frankfurt said that the talks are ongoing, and declined to comment further. The plan, which needs ECB approval, will see the state swap so-called promissory notes used to rescue Anglo for long-term sovereign bonds, which will be held by the nation’s central bank, according to people with knowledge of the matter.

To contact the editor responsible for this story: Dara Doyle at ddoyle1@bloomberg.net


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