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Tracker deal bid rejected

IRELAND'S creditors at the EU, ECB and IMF have rejected a plan by Irish banks to scrap tracker mortgages.

It is reported that the ECB has scuppered hopes of a deal on Anglo Promissory notes and it was hoped that a deal to rid the banks of the loss-making mortgages would give the financial institutions a new lease of life.

Tracker mortgages typically charge an interest rate of about 1.8pc -- below the 3-4pc banks pay to fund themselves in the market.

A deal on these tracker loans, which was meant to be part of the overall deal on Anglo Irish, would have given a huge boost to the local banking sector.

The European Commission has now completed its eighth review of the EU-IMF financial assistance programme for Ireland and has published the technical report by the Directorate General for Economic and Financial Affairs, which assesses programme implementation by the Irish authorities.