Sunday 25 February 2018

Peter Mathews: Let's not delay in pouncing on ECB admission

The European Central Bank must cough up for wrongly forcing Ireland to repay bondholders, says Peter Mathews

Fourteen months ago, Michael Noonan was quoted as saying: "We need your assistance in dealing with the senior bond holders because we don't think the Irish taxpayer should have to redeem what has become speculative investment."

Within two days a eurozone source was quoted as saying: "The general stance of the ECB is known and is very unlikely to change."

Last Monday, it became clear that it has, in fact, changed utterly. Reports in the Wall Street Journal that the European Central Bank (ECB) advocates imposing losses on senior bondholders in the Spanish banks is a vindication of this Government's opposition to bailing out the bondholders. Bondholders freely chose to gamble on insolvent banks. They didn't share their profits with the Irish public during the boom times. It is wrong and patently unjustifiable that the Irish public was dumped with the bill for their losses as a result of the banking collapse.

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