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Government must clarify promissory note arrangements – Doherty

21 March, 2012 - by Pearse Doherty TD


Speaking in response to an announcement by Minister for Finance Michael Noonan regarding the replacement of this year’s March 31st promissory note payment to IBRC of €3.1bn with a long term Irish Government bond, Sinn Féin Finance spokesperson has called on the Government to "provide more detail on the arrangement being proposed so that the public can judge the actual impact of the arrangement on the public finances."

Deputy Doherty said:

“For the last 12 months Sinn Féin has consistently placed the issue of the promissory note on the political agenda. Any reduction in the state’s liability to the payment of this debt to Anglo Irish Bank would be a welcome one.

“However today’s announcement by Minister Noonan is very vague. It appears that what the Government has succeeded in doing is replacing a promissory note to Anglo Irish Bank with a sovereign government bond to Anglo Irish bank.

“If this is the case it will not reduce our debt levels and we will still be liable to pay the full €31bn to Anglo Irish bank at a future date.

“While this arrangement may have some short term benefits, what is needed and what Sinn Féin has consistently demanded is for this debt to be written down.

“We must be mindful that this is the second payment by this Government. In our view this is now a golden opportunity to secure a full write-down of this debt.

"I am calling on the Government to provide more detail on the arrangement being proposed including the impact this arrangement will have on our debt and deficit levels for 2013 and subsequent years so that the public can judge the actual impact of the arrangement on the public finances.

“Sinn Féin will be the first to congratulate the Government if they secure a write down of this debt. However it would be premature to comment until we see the full details.”

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