Enda Kenny announces deal on Anglo-Irish debt with European Central Bank

Irish leader calls move “a historic step on Ireland’s road to economic recovery"

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A man removes a sign from Anglo Irish Bank

Photo by Niall Carson/PA

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“Both institutions became synonymous, both at home and abroad, with the reckless mismanagement of our banking system and economy under the watch of the previous government.”

Kenny added: “Both banks were emblems of cronyism and became a stain on our international reputation and a dent to our national pride.

“I believe that today’s agreement is a significant milestone. It closes a sad and tragic chapter in our economic and political history.”

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SInn Fein leader Gerry Adams stated that the government had merely transferred the bank debt to the Irish taxpayers and they should have refused to accept the debt in the first place. His party voted against the liquidation.

Deputy Prime Minister and Labour Party leader Eamon Gilmore said the Government was ‘doing what should have been done on the night of the bank guarantee’ which was voted in by Fianna Fail before its dramatic fall from power.

Gilmore said: “This Government is doing what the last government should have done.

“The significance of wiping Anglo and Irish Nationwide - which will live on in ignominy - out of existence will not be lost on the Irish people.

“These banks and the people who ran them, and the golden circle around them, were the very roots of the crisis which has caused so much distress to the Irish people.”

The new legislation provides for the appointment of a special liquidator to wind up the bank immediately according to a report in the Irish Times.

A senior government source confirmed to the paper that a draft of the legislation had been prepared last autumn when a similar leak of sensitive information seemed possible.

The accountancy firm KPMG will take charge of the liquidation.

Finance Minister Michael Noonan said: “They had all their arrangements in place as well with people ready to protect IBRC assets in New York, Dublin and London.

“But there were several scares in the past few months when there were substantial leaks which could have meant acting sooner.

“The board of IBRC was also kept in the dark for legal reasons. While there were a lot of people in the loop of knowledge, IBRC weren’t.”

The Bill to liquidate Anglo Irish Bank was passed with the support of Fianna Fail and the majority of independents.

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