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€1.1bn of Anglo Bonds must not be paid

26 June, 2012 - by Pearse Doherty TD

Sinn Féin Finance spokesperson Pearse Doherty has called on the government to block the payment of €1.14bn worth of unguaranteed unsecured bonds by IBRC due this week. Four bonds are to be paid, two formerly held by Irish Nationwide and two by Anglo Irish Bank. They are due to be paid on June 26, 27 and 28.

Deputy Doherty said:

“This week IBRC will pay out on four unguaranteed unsecured bonds formerly held by Anglo Irish Bank and Irish Nationwide. The total pay-out will be €1.14bn.

“One of the bonds due to be paid today amounts to €598 million. Another bond, due to be paid on Thursday amounts to €496 million.

“Sinn Féin has long argued that such unguaranteed unsecured bonds should not be paid. Recently organisations such as the IMF, the OECD and the European Commission come round to Sinn Féin’s view that senior bondholders must take some kind of hit.

“The government has committed to wrenching at least €3.5bn out of the economy in this December’s budget. This week’s bond pay-outs amount to almost a third of this.

“This money should be invested in job creation. It could be invested in our education and health systems. Instead the government is allowing IBRC to waste it on bondholders, who may have bought the bonds on the secondary market for a fraction of the original price.

“Taxpayers money should not be used to pay-off speculative bond holders. The government should not allow these payments to go ahead. Rather this money should be invested in the domestic economy.” ENDS

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