Nama will rehire IBRC staff

Nama will rehire former IBRC staff to deal with specific files according to Minister for Finance Michael Noonan.

Mr Noonan said that the government will be “on the look out” for the interests of former employees following the liquidation of the IBRC in last week’s promissory note deal.

"Liquidiaton is a fairly crude instrument always. This is a liquidation where staff are being treated as they would be in any other liquidiation. But unlike when the shop on the street closes down, the liquidator here is reemploying people on ongoing monthly contacts”, he said.

Mr Noonan's comments came before an Ecofin meeting of European finance ministers in Brussels today. He also welcomed Standard & Poor's improved outlook on the country's debt.

"Two of the ratings agencies now have moved us from 'negative' to 'stable'. This obviously helps our market position and you have seen the way interest rates have come down since we got the deal on the promissory note.

"The ratings agencies are endorsing that so we think we'll continue to progress and keep ourselves in a pretty solid condition", he added.

European finance ministers discussed debt restructuring for Cyprus and targeting currency rates at the Ecofin meeting.

Following discussions EU commissioner for Economic and Monetary Affairs, Olli Rehn, said the EU is not working on a debt restructuring for Cyprus that would force heavy losses on investors.

Cyprus needs about €17 billion from the euro zone to recapitalise its banking sector and to finance government spending over the next three years, which is almost as much as the whole Cypriot economy produces in a year.

Mr Rehn added that targeting currency rates would go against the "spirit" of Group of 20 agreements.

He added that exchange rates should "reflect economic fundamentals and be market orientated" adding that the euro "remains broadly in line with its long-term average in real, effective terms”.

Additional reporting – Bloomberg/Reuters