What do we do with their billion euro profit? Is this budgeted for?
I had presumed the 'profit' was on financing to our covered banks so that there really is no profit as the money to pay for that financing came from the state anyway. Am I wrong?
This is part of the circular deal on the promissory notes that Karl Whelan has been talking about. We pay Anglo interest, they pay the CB, the CB pay the state.
I'm not quite as sanguine as Mr. Whelan about this being frictionless (sticky hands everywhere), but the cost of the PNs is not as high as it appears.