Campaigners say promissory deal is a stitch up and a lost opportunity

, , Comment closed

4 Flares Twitter 4 Facebook 0 4 Flares ×
Print pagePDF pageEmail page

Press Conference: Friday 30th, 11.15am Central Hotel, Exchequer St Dublin

Campaigners say promissory deal is a stitch up and a lost opportunity

The ‘Anglo: Not Our Debt’ Campaign, which includes a wide range of community, global justice and other organisations, has described the deal on the deferral of the €3.1 billion ‘promissory note’ payment due tomorrow as a “political stroke” that does not address the real issue and that squanders an opportunity to write down an illegitimate debt.

Speaking at a press conference today, campaign spokeswoman Nessa Ní Chasaide said that the government

“was borrowing from an ill defined Peter to pay a Paul that has no right to be paid in the first place – one form of illegitimate debt is being replaced by another. Rather than refuse the socialization of massive private bank losses, this move will see the state, and ultimately the people in Ireland, assume full sovereign responsibility for €30,000,000,000 of debts run up by private speculators.

After the press conference, the campaigners will hand in a petition with almost 7,000 signatures at 12.30 at the Department of Finance calling for the debt to be written down, rather than deferred.

Community activist Cathleen O’Neill, speaking at the handover of the petition, claimed that the fundamental issue was not being addressed:

we, ordinary people living in Ireland, did nothing to run up this debt in the first place – it is not our debt, and we should not be paying it, nor should our children be paying it next year or whenever the can is being kicked down the road to”.

Andy Storey, chairperson of the NGO Action from Ireland (Afri), pointed out that had the government simply cancelled the payment due tomorrow then this would not have been a sovereign default but that canceling the new sovereign bond that is being issued would constitute such a default:

we have been boxed into a corner here. This is a stitch up, making it harder for us to write down this illegitimate debt in the future, whereas this is something we could and should have done right now.”

UCD lecturer Marie Moran highlighted what she saw as another alarming aspect of the deal:

the promissory note payment would not have gone to anyone, it would have been removed from circulation, so cancelling it would not have hurt anyone. But the new debt we are taking on will be owed to somebody or other, we are not even sure who yet, so canceling it in the future will be more difficult; far from solving the problem, we are digging ourselves into a hole here”.

Ms Ní Chasaide noted that there was also no clarity on what would happen with the payments scheduled for beyond 2012:

we need a just and long-term solution, not a political stroke based on short-term expediency. It is unfathomable that the Irish Government legitimises this debt whilst Anglo is under criminal investigation for what may be the largest fraud in the history of the state.”

The campaigners highlight that the €3.1 billion payment that was due to be made by the state on behalf of Anglo on March 31st 2012, and now appears scheduled for repayment either in 2013 or in 2025 (it’s not fully clear yet), would fund the cost of running Ireland’s entire primary school system for a year.

Read the Minister for Finance Michael Noonan’s Statement on the Promissory Note Deal.

Anglo: Not Our Debt campaign is supported by the Debt Justice Action network, which consists of the following organizations:

A simple ‘questions and answers’ document on Anglo debt can be found at