Ireland 'to request ECB debt repayment delay'

22 March 2012

Ireland is set to request permission to delay a cash payment on its banking debt in order to help boost its own economy.

That is according to two insiders in the country's financial industry, who have told Bloomberg Patrick Honohan, governor of the Irish Central Bank, will ask the European Central Bank Governing Council if his institution can have an extended deadline on its debt repayment schedule.

Mr Honohan is scheduled to meet with officials on the continent today (22 March) and is likely to make this request as he sees it as a way of helping the nation ease the burden of saving its own financial system.

Under the terms of its repayment plans, the country is scheduled to make a $4.1 billion instalment to the former Anglo Irish Bank Corporation, but instead it intends to use this money to purchase a new government bond.

This would then mean the funds remain in the Irish financial system and help the nation's period of recovery.

By Asim Shah

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