Government must look for separation of banking and sovereign debt following Draghi’s comments: Doherty
February 18, 2013
Sinn Féin Finance Spokesperson Pearse Doherty TD has said the government must look for a separation of banking and sovereign debt following comments by Mario Draghi today.
Deputy Doherty said;
“The ECB retains the right to compel the Irish Central Bank to sell the bonds swapped with the Promissory Notes when it chooses to do so. By forcing Ireland to dump its bonds early the ECB would be forcing Ireland into a situation worse than before this month’s deal. This now appears to be a real possibility if the ECB is looking for legal certainty.
“The uncertainty created by Mr Draghi’s comments is yet another reason for Ireland to push for a separation of banking and sovereign debt once and for all. Clearly, Mr Draghi’s comments show an uncertainty about the durability of the new arrangement.
“The government should revert to the Eurogroup’s decision of last June to separate banking and sovereign debt as the only clear exit from the Anglo-Irish Bank mess. The government must insist that the Eurogroup’s commitment of last June is followed through on so that the Irish people will be free of private toxic banking debt on the sovereign and the resultant economic hardship.”