The ECB has said last year's deal to liquidate the former Anglo Irish Bank and destroy the promissory notes may be a breach of EU law.
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The bank's annual report says the deal – which saw the promissory notes replaced with long-term bonds – raises "serious concerns" about a breach of the EU's rules on printing money to fund individual governments.
It's encouraged the Central Bank to sell off the bonds as a way of dealing with these concerns – a move which would force the taxpayer to pay millions in interest to external lenders.
The report also raises concerns about Ireland's health spending, and insists that the sector needs to be brought under control in order to keep government spending within EU limits.
