Fianna Fáil Finance Spokesman Michael McGrath TD has said the Taoiseach Enda Kenny needs to urgently correct the record of the Dáil following misleading comments made by Mr. Kenny during Leaders’ Questions about the €700m unsecured, unguaranteed senior Anglo Irish Bank bond that falls due for payment next week.
“The Taoiseach has misled the Dáil on an extremely serious matter this morning and it must be urgently addressed as the bond in question falls due for payment next Wednesday, 2 November. The Taoiseach told the Dáil that the €700m bondholder payment due to in Anglo Irish Bank next week must be paid as a result of the promissory note arrangement in place at the bank.”
“This assertion is totally incorrect. The apparent Government decision to repay the €700m bond in full and the promissory notes for Anglo Irish Bank are entirely separate matters. The promissory note structure was used as a means of recapitalising Anglo Irish Bank and provides no obligation whatsoever to repay the remaining unguaranteed bondholders. Either the Taoiseach doesn’t know this or he deliberately misled the Dáil. Either way, the Taoiseach must immediately correct the record of the House.”
‘It is worth remembering that Finance Minister Michael Noonan, with great fanfare on the eve of the Government’s 100 days in office, said from New York: “…as far as I am concerned, this is not a real bank [Anglo]. This is a warehouse, and we need your [IMF] 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. I don’t think it should be .We have it raised as a very strong issue at the very highest level.” – June 15th, RTÉ News, Washington.
Deputy McGrath concluded: “This Government, despite its election promises and subsequent commitments, has raised the white flag when it comes to tackling the issue of the remaining €3.5 billion unguaranteed senior bondholders in Anglo Irish Bank and Irish Nationwide. Now the Taoiseach has completely misled the Dáil on the payment to be made next week in relation to the $1bn bond maturing in Anglo.
“I can only conclude that we heard this morning in the Dáil was an attempt by the Taoiseach to link the payment of this €700m bond with the promissory notes to mask the Government’s total failure to tackle senior bondholders in Anglo and Irish Nationwide. It is all a far cry indeed from the ‘another cent’ for the banks catch cry during last February’s election.”