A businessman has brought an application for judicial review proceedings in the High Court seeking a declaration that part of the Credit Institutions Act be declared unconstitutional.

The Act gave jurisdiction to the Minister for Finance to issue promissory notes to IBRC.

John Rodgers SC, representing businessman David Hall, who is also a founder of New Beginning, told Mr Justice Michael Peart his client was concerned that the issuance of promissory notes constituted the creation of expenditure.

He argued that this was by the executive, without approval of the Dáil, and thus in violation of the constitution.

He said the purpose of the application was to show there was no Dáil cover for the promissory notes and his client wishes the legality of that to be judged.

Justice Peart gave leave to put the Minister for Finance, the Attorney General, the Central Bank, IBRC and the EBS on notice of the application which he put back for mention before him on Wednesday morning.

Earlier, a spokesperson for the Department of Finance has said talks with the ECB over converting a €3.1 billion payment on the promissory note into a long-term government bond continued throughout the weekend and are ongoing.

Under the terms of the promissory note issued to IBRC (formerly Anglo) by the last government the €3.1 billion payment is due to be made on March 31st.

If the talks outcome is successful the government will be allowed to issue a bond payable over a longer term in its place.