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Government must impose burden-sharing on senior bondholders in Anglo & Irish Nationwide – Doherty

31 May, 2011 - by Pearse Doherty TD

Speaking following the publication by the Central Bank of the stress tests into Anglo Irish Bank and Irish Nationwide today Sinn Féin Finance Spokesperson Pearse Doherty has called on the Government to impose burden sharing on senior bondholders.

Deputy Doherty said:

“While some people will welcome today’s announcement by the Central Bank that no further capital will be required by Anglo Irish Bank and Irish Nationwide, the fact remains that €34.7 billion of public money has been committed to these zombie banks.

“To date a total of €7.1 billion of this has been paid to Anglo Irish Bank and Irish Nationwide. The remaining €27.6 billion has yet to be paid.

“At a time when the Government are cutting spending on carers and special needs assistants, and imposing enormous hardship on tens of thousands of struggling families across the country, it is simply unacceptable that tens of billions of public money is to be poured into toxic banks.

“The Government have publicly flirted with the idea of imposing losses on senior bondholders in Anglo Irish Bank and Irish Nationwide. However to date they have used the excuse of the pending stress tests as an excuse for inaction.

“We now have the results of the stress tests and it is time for Government to put up or shut up on this matter. They have a clear choice. Either they continue to cut much-needed front line services causing increased hardship for thousands or they force losses on senior bond-holders.

“In Sinn Fein’s view this issue can no longer be fudged. Imposing burden sharing on senior bond-holders is an urgent first step in getting the public finances back in order. There is simply no justification for saddling the public with an additional debt of €27.6 billion. The Government must impose burden-sharing on senior bond-holders in Anglo Irish Bank & Irish Nationwide.” 

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