At least €750 million of the estimated €1 billion in "transaction costs" arising from the liquidation of Irish Bank Resolution Corporation will be paid to bondholders.

The liquidation will result in an "event of default", as the liquidator will be unable to pay money that bondholders are entitled to demand.

However, because the bond in question - a 4% fixed rate guaranteed note due for redemption in April 2015 - is covered under the Eligible Liabilities Guarantee Scheme, the Government must pay out the full principal and any interest accrued to date to holders.

This payout will result in most of the estimated €1bn a year interest saving, which resulted from the scrapping of the promissory notes, not being available to the Exchequer this year.

However a number of subordinated bondholders, who are not covered by the ELG, stand to lose their entire investment, understood to amount to around €200m.

These subordinate shareholders refused a buyback offer from IBRC at an 80% discount, and engaged in legal action to recover the full amount from IBRC.

Emergency legislation passed yesterday morning stays their claim and, as unsecured creditors in a liquidation, they go to the back of the queue for any payout if any money remains in IBRC after all secured creditors are paid.

Following reports on RTÉ News yesterday, it has been confirmed that Mike Aynsley has stepped down from his role as CEO of IBRC.

In an email to staff, he described the bank debt deal that triggered the liquidation as "very positive for Ireland".

Separately, the National Treasury Management Agency has confirmed that it had completed an exchange with the Central Bank that will replace the Anglo promissory note with Irish Government bonds.

It said that, as a result, the Minister for Finance’s liability under the note “has been discharged and the promissory note cancelled”.