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Litmus test for promissory note deal will be its impact on debt and budget – Pearse Doherty

6 February, 2013 - by Pearse Doherty TD

Sinn Fein Finance Spokesperson Pearse Doherty TD responding to breaking news on the promissory notes said tonight that the litmus test of this deal will be the ultimate impact it has on debt and the annual budget. He reiterated that the promissory notes should not be repaid.

Doherty said:

“The summit last June committed to separating banking debt from sovereign debt. My party has always insisted that the Anglo Promissory Notes are not the debt of the Irish taxpayer and we have urged this Government to not pay them, because we cannot pay them.

“The details of this deal are sketchy. Sinn Fein has no objection to the liquidation of Anglo Irish bank if it rids us of the current promissory notes. However, that is where the government should stop. It should not be replacing the promissory notes with a sovereign bond.

“Rather than seek a write-down of the promissory notes, this government appears to have focussed all its efforts on changing the terms under which the notes are repaid. If what has been emerging in the news transpires, and the promissory notes become a sovereign bond, this severely limits future restructuring of these notes.

“The litmus test of any deal that happens in the next day or so will be whether it reduces this state’s sovereign debt and whether it has a positive impact on the state’s budgetary position. I am hugely concerned that, regardless of what comes out of this process, the government has not agreed with the Troika that it will change next year’s budget targets. We could still have a €3.1 billion adjustment to make come the end of the year.”


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