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Ireland still has the option of burning bondholders – Morgan

1 December, 2010

Speaking in the Dáil today on the EU/IMF programme for Ireland Sinn Féin Finance Spokesperson Arthur Morgan said the Government still has the option of burning the bondholders.

Deputy Morgan said:

“This state still has options. We can burn the bondholders in Anglo Irish bank. We can offer the bondholders in AIB and Bank of Ireland hugely discounted rates to go away before we fully nationalise both banks, or burn them. This is a market solution to a market problem.

“This is bank debt, not Irish government or sovereign debt. The banking guarantee must be immediately abolished and only the guarantee for depositors must remain. This will show international markets that we are serious about protecting our citizens and rebuilding our economy – that is the message they are looking for from us.

“Once more our reserves are being raided to fund the defunct banking system. The Fund should be renamed the National Bankers Pension Reserve Fund because it seems that is the only use that the Government are making of it.

“Until now Irish and EU law had made it illegal for Ireland to use its pension fund to cover current expenditures. It is now the case that saving the bondholders overrides national and European law.

“The EU and the IMF are keen for Ireland to become dependent on their cash. Once we become wholly reliant on these institutions for cash, we will be subject completely to them. This cannot be allowed happen. We cannot fall for this.” ENDS

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