Fianna Fáil Spokesperson on Finance Michael McGrath has called for an immediate statement from the Government following reports that the ECB has rejected a deal on Ireland’s promissory notes.
 
According to the Reuters news agency, the Governing Council of the ECB discussed the issue at a meeting on Thursday, which was attended by Governor Honohan of the Central Bank of Ireland.  It’s reported that they rejected a deal on Ireland’s promissory notes on the basis that it would be contrary to EU treaties. It is also being reported that discussions have begun with the IMF for alternative funding.
 
Deputy McGrath commented, “As Governor Honahan is reported to have attended this meeting, the Government will have been aware of this development for at least two days and has said nothing.
 
“From the very beginning, the Government’s strategy has been to talk up its negotiations without explaining to the public either what they are asking for or what the substance of the negotiations involve. In recent weeks the Taoiseach, Tánaiste and Minister Noonan have said that they expect that a deal is on the way. Ireland is entitled to a deal on the promissory notes as most of the debt was incurred under ECB pressure and with no EU assistance available.  Insisting on the repayment on existing terms would be dramatically unfair and undermine Ireland’s ability to recover.
 
“The Taoiseach and his Ministers need to put aside their current strategy and be open with the Irish people about what is going on. They must explain what they are asking for and what they will do if we do not get it.”