Ireland will liquidate Anglo Irish Bank

Votes through emergency legislation.

Photograph: Getty Images

Ireland have brought through emergency legislation in order to liquidate Anglo Irish Bank. The debt will be turned into a long-term bond which will cut cost to the taxpayer.

Here's the Telegraph:

The changes will require the consent of the European Central Bank, which is expected to come today, and follows negotiations between Irish and ECB officials.

At present, the Irish government must pay €3.1bn (£2.7bn) every year to service the debt it took on to rescue the bank, equivalent to about 2pc of the country's GDP over the next decade.

The plan will involve the replacement of €28bn of promissory notes with long-term Irish government bonds that will allow the state to repay the money at a slower rate.

Former executives of the bank are to go on trial for fraud next year.

The collapse of the bank was a trigger for Ireland's financial crisis, eventually precipitating an EU bailout of 67.5bn euros.