Noonan must deliver recapitalisation of Irish banking debt this month: Doherty
Sinn Féin Finance Spokesperson Pearse Doherty TD has said Minister Michael Noonan must make progress on the full retrospective recapitalisation of Ireland’s banking debt at this month’s ECOFIN and EuroGroup meetings.
Deputy Doherty said:
“It will be almost exactly a year since last June’s EuroGroup commitment to separate banking and sovereign debt.
“Progress has been painfully slow throughout the Irish Presidency and now, one year after senior ministers announced a ‘game-changer’ and a ‘seismic shift’, the Irish people are still carrying the banking debt.
“If anything the momentum is moving away from the separation of Irish banking and sovereign debt.
“Klaus Regling of the ESM is quoted this week as saying that direct bank recapitalisation by the ESM may not be able to solve all the old problems that emerged when national supervisors were in charge of the national banking systems–the so-called legacy asset problem.
“Today also sees reports of a Franco-German agreement to delay the coming into operation of the ESM until 2015.
“These are worrying statements that do not bode well for Ireland’s interests at this month’s meetings.
“It is clear the government has taken its eye off the ball for months now. Minister Noonan must refocus on this month’s meetings and ensure that the full cost of the banking debt is taken on by the ESM as soon as possible.
“Another IBRC style surrender which fails to separate banking debt from the sovereign should not be allowed to happen. Four times now the minister has announced the extensions of maturities of Irish loans but no progress on the core issue of retrospective recapitalisation of banking debt has been made.
“Anything short of that full recapitalisation as soon as possible would be another defeat for this government’s softly-softly strategy to clear the debts of our banks off the shoulders of the Irish people.”