Thursday, December 2, 2010

Burn the Bondholders While We Still Can

Burn the Bondholders While We Still Can

Responding to the latest details about the terms of the government’s deal with the EU/IMF, Sinn Féin councillor Jonathan O’Brien has said we need to burn the bondholders while we still can, and keep the National Pension Reserve Fund for investment in our economy rather than the banks.

Cllr O’Brien said:
“What the EU and IMF are proposing is a bailout for the banks, not for Ireland. Some €17.5 million of the money is from our own funds – you cannot bail out yourself. But while the banks are being bailed out, it is Irish citizens who are being asked to foot the bill.”
“This state still has options. We can burn the bondholders in Anglo Irish bank. We can offer the bondholders in AIB and Bank of Ireland hugely discounted rates to go away before we fully nationalise both banks, or burn them. They took a gamble and they lost. The debt is bank debt, not Irish government debt or sovereign debt. Forcing the bondholders to take their losses is a market solution to a market problem.”

“The government wishes to use €12.5 billion from the National Pension Reserve Fund as part of the latest banking bailout. Once more our reserves are being raided to fund the defunct banking
system. When Sinn Féin proposed using this money to fund a stimulus package to promote jobs and recovery we were told it could not be touched. But the fund has repeatedly been raided to bail out the banks.”
“The EU and the IMF are keen for Ireland to become dependent on their cash. This cannot be allowed happen. Not one further cent out of the pension reserve fund should be handed over to the banks.”
“If the government implements its proposals, Ireland’s future options and our potential for recovery will be severely limited. We must burn the bondholders while we still can.”
For further information or comment contact Cllr Jonathan O’Brien @ 085-2133907

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