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Minister must state how ECOFIN meeting affects retrospective debt: Doherty

5 March, 2013 - by Pearse Doherty TD


Sinn Féin Finance Spokesperson Pearse Doherty has called on Minister Michael Noonan to outline if anything has been achieved on the issue of retrospective bank recapitalisation at this week’s ECOFIN and Eurogroup meeting.

Speaking at Leinster House today Deputy Doherty said;

“Minister Noonan must come out clearly and state the current situation as it stands on the possibility of retrospective recapitalisation through the ESM of Irish banking debt.

“Last June the government heralded a ‘seismic shift’. That seismic shift was a Eurogroup commitment to separate toxic banking debt and sovereign debt. Government Ministers told us this would be applied retrospectively in Ireland’s case. Yet now nine months later, this issue appears to be very much on the long finger.

“Minister Noonan must spell out when this is likely to happen and to what degree the €28 billion Fianna Fáil and his government have sunk into the banking system will be paid back to the citizens of Ireland.

“Ireland is carrying €28 billion of toxic banking debt taken on by a panicked government under pressure from the EU. He must ensure that the Eurogroup follows through on its commitment.

“The Minister must further clarify if there will be any extra conditions applied to Ireland because of this extension given that the Eurogroup have said ‘countries will remain under post-programme surveillance as long as it has not repaid at least 75% of the financial assistance it has received from other member states, the EFSM, the EFSF or the ESM.’

“Sinn Fein is concerned that the government has taken its eye off the ball and allowed for a rowing-back from last June’s position. The government must re-intensify its efforts and get a deal on retrospective recapitalisation so that the burden of austerity can be lightened for the Irish people.”

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