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Government must prevent multimillion payout to IBRC junior bondholders – Doherty

9 June, 2015 - by Pearse Doherty TD

Sinn Féin Finance Spokesperson Pearse Doherty TD has said the government should listen to Governor Honohan and ensure that junior bondholders at IBRC are not paid hundreds of millions of euro as a result of the liquidation of IBRC. Deputy Doherty had raised the issue in Priority Questions in December when it was first reported that, despite reassurances at the time of liquidation, these bondholders were in line to be paid.

Deputy Doherty said:

“The reports today show a government in disarray over this issue.  Six months ago when I brought this to the Dáil we had the spectacle of Joan Burton on the national airwaves emphatically saying that the junior bondholders would not be paid. Notably this contradicted Minister Noonan’s view as expressed to me when I raised this issue in the Dáil. He told me unambiguously "Should the junior bondholders submit a claim and it is found to be valid then they will be legally entitled to a dividend provided there are sufficient funds available for distribution". The report today shows the Department of Finance adopting a fatalistic approach and once again in the year 2015 the ECB will not be challenged and bondholders will be paid.

“Governor Honohan is a member of the ECB Governing Council.  To see his concern and opinion dismissed without adequate discussion is unacceptable. The Governor backs Sinn Fein’s calls for the government to draw a line and say no to vulture speculators reaping hundreds of millions of the people’s money. Yet his arguments are met only with a cynical defeatist attitude from the Department of Finance, presumably taking their lead from the Minister.

“The government and the Labour Party in particular needs to state now if it intends to pay the bondholders. They cannot hide behind legal disputes forever. Are they going to listen to the Department of Finance spinning the same old line or take action as outlined by Governor Honohan in defence of the Irish people? Where now stands Joan Burton's emphatic “No” to paying the bondholders?”

NOTE: Transcript of Deputy Doherty's exchange with Minister Noonan from 3rd December 2014 attached

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