'Ireland has no moral obligation to repay Anglo bond' - Stephen Donnelly
Published 01/11/2011 | 09:24
Ireland has no moral obligation to repay $1 billion in unsecured loans from private transactions - chiefly with Anglo Irish bank - an Independent Dail Depuy claimed today.
Wicklow TD Stephen Donnelly called on the government to play "hardball' with the ECB in the months to come, reiterating Finance Minister Michael Noonan's quote from last December before he entered cabinet that it was a "downright obscenity" to be asked to honour such payments.
He said that by continuing to beat the drum of the previous government and stating that Ireland will pays these type of debts, the current administration were actually weakening our hand of recovery.
"And that's not what this government was brought in to do," he pointed out.
Mr Donnelly said that the ECB would "rattle its sabre" for a while if we said we were pausing on paybacks, but the reality was that there was no reason why the Irish taxpayers should take on such responsibility for what was essentially private debts.
He said oiur ability to rejoin the bond markets was being hit by the size of the sum we were being asked to pay back. The market locked us out because of the scale of this debt and it was up to our government to seek a major write down.
Deputy Donnelly claimed that the scale of the payback was such that it could pay for special needs for many years and could keep a hospital like Loughlinstown open for decades to come.