NAMA has redeemed €750m of bonds issued to the Central Bank in connection with the liquidation of the former Anglo Irish Bank.

To date €1.75 billion worth of the €12.93 billion in senior bonds issued to the Central Bank have been redeemed, leaving just under €11.2 billion outstanding.

The complex transaction behind the €12.9 billion debt issue by National Asset Management Agency involved the agency using the debt to acquire a floating charge from the Central Bank over assets controlled by the Irish Bank Resolution Corporation (comprising the former Anglo Irish Bank and Irish Nationwide).

The arrangement between NAMA and the Central Bank last year was part of the swap of promissory notes, issued by the state when Anglo was nationalised in 2009, for long term government debt.

As the IBRC loan book is wound down by special liquidators appointed to the institution any proceeds from asset disposals are paid to NAMA.

It uses the cash to redeem the bonds, effectively paying off the "debt" owed to the Central Bank.