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THE DÁIL has approved emergency legislation to immediately liquidate the Irish Bank Resolution Corporation, the combined former Anglo Irish Bank and Irish Nationwide, with immediate effect.
The approval came after four hours of debate in a dramatic late-night emergency sitting, called by the government after it openly feared for the security of IBRC’s €12 billion in assets.
Those fears came after Reuters and Bloomberg reported that Ireland’s plans to scrap the IBRC promissory notes, and replace them with a long-term government bond, would involve the liquidation of the former Anglo.
Being unable to deny these reports, the government appointed interim liquidators to the bank at the close of business yesterday, and stood down the board, ahead of tabling the IBRC Resolution Bill which would appoint a special liquidator as soon as it is passed.
In an act unprecedented in recent history, President Michael D Higgins – who is this week visiting Italy – interrupted his trip to return home so that he would be available to consider any legislation presented for his signature.
The legislation – which finance minister Michael Noonan said had been drafted several months ago, but which was still only distributed to opposition TDs just half an hour before the Dáil discussed it – was passed by TDs shortly before 3am, by 113 votes to 35.
If passed by the Seanad and signed into law – with a Seanad vote due at about 5am – the legislation would see the special liquidator proceed to sell off all of IBRC’s assets and liabilities – with the bulk going to NAMA, which will act as a kind of purchaser ‘of last resort’ if no other parties wish to buy each asset.
It would also immediately lay off IBRC’s workforce of approximately 800 – though Noonan said he understood that most of these staff would be immediately rehired either by the liquidators, or by NAMA when it takes on IBRC’s assets.
Noonan said he regretted that this was the case, but conceded that it was necessary that the legislation be introduced overnight so that there could be no attempt by IBRC’s creditors to try and stop the process in the courts in the morning.
Other features of the legislation include an immediate freeze on any legal action involving IBRC, with court approval required before any new proceedings can be brought against the bank. Any injunction against the liquidator can only be granted in the public interest.
The intention of the bill is that the promissory notes – which currently require an annual repayment of €3.06 billion, due at the end of March – will be replaced with NAMA-issued bonds, which are covered by a government guarantee.
This will have the effect of removing the annual repayments, but also incorporating IBRC’s former liabilities into NAMA and therefore bringing them fully within the State. Because the cash will be owed to the Central Bank – and therefore to the ECB – this cannot be written down.
ECB approval for the scheme could come later today when its governing board meets in Frankfurt. A preliminary agreement had originally been expected last night, but was put on ice when the bank was reluctant to commit to the idea immediately – a delay which originally called off the late-night Oireachtas sittings.
It quickly emerged, however, that the outstanding question marks about the future of IBRC left the government with no option but to kill the institution – and prompting the late-night parliamentary business to pass the laws necessary to do so.
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So this toxic banking debt now becomes sovereign debt completely.
How long before we hit rock bottom and civil unrest breaks out, we break down the gates of Leinster house and hold these cowboys accountable. Sooner rather than later hopefully.
What will that achieve?
“Honesty and Justice”
Two words we will never see in connection with this government.
Later rather than sooner, I hope. Good luck with the revolution, but I’m more interested in feeding the kids.
Show them how angry you are on Saturday
I don’t think there is a “sooner” any more, it’s 5 years now.
@Damien
Lets be honest here…if it hasn’t happened already, it more than likely never will. Us Irish are too passive when it comes to things like this. Just my 2 cents
How are we passive? We didn’t take British occupation lying down did we? Revolution just is not appropriate right now. Replace the current system with what? All the clowns who comment online about burning boldholders and smashing down gates. If there is genuine dissatisfaction with the government and political parties it can be dealt with quite easily within the framework of our state without the need for a messy revolution. Every few years we have these things called elections. These elections allow us to choose suitably appropriate individuals to make decisions on our behalf. If the militant revolutionaries are unhappy with the available choices on the ballot they can Do something sensible about it and stand for election themselves . If enough people agree with what they will have to say, and enough of them get elected, then they can change whatever they want without resorting to vandalising the gates of Leinster house.
Not half as bad as the “clowns” that are running this country and the “clowns” that try to justify the sleeveen liars that have the neck to call themselves a government.
Hey Grandkids, see that can? It’s a time capsule from 2013! Enjoy, lots of love all the old people XXX
As a mark of respect to the people of Ireland, Seanie and Fingers and the former financial regulator should be jailed immediately with all pension entitlements cancelled.All TD pension schemes for this dail and the previous dail should be stopped immediately. These so called leaders need to show remorse for what they have signed over to our future workforces.
This move would go nowhere near making amends for their catastrophic failure as political leaders, but when the history books are written, their own future offspring can at least take some pride from the fact that their ancestors did really care for the people that entrusted them as representitives.
Absolutely, if they can change this legislation, they can certainly change that legislation and start back dating.
By the way, KPMG have been named as liquidators. The same company were the auditors to Anglo while all this mess was created. Sinful
No, Ernst & Young were Anglo auditors at the time. Google it.
It was E&Y you are thinking of, not Kpmg
Bum steer from a different news source on KPMG. apologies
Did you know my dad’s the highest earning partner in KPMG? :)
KPMG did INBS
Still don’t understand if this is a Good Thing or a Bad Thing despite all the histrionics in this thread. If the repayments are reduced, growth is helped and inflation will reduce the impact of the loans?
In the short term this will help the country.
One of My questions is how short sighted are we?
Is it just me or do they not realise in the next 40 years there will be 2-3 recessions. Recessions and booms are cyclical, ask anyone who has lived for over 50 years.
What happens in 2023 when we agree in a slump again after the mini revival? When we have a huge amount of young educated people coming out of school with no prospect of work.
When we have more people than ever beyond the working age on state pensions because 1) people get older but 2) these are the very people who’s pensions went down the toilet or were raised by the government
This action is only compounding the problem.
To anyone who thinks this is the end of this unholy mess, think again. It is an act of monstrous national sabotage by a bunch of spineless cretins, whose self interest is all consuming. Lenihan and Cowan could use the fig leaf of sickness and abandonment to try and excuse the wreckage they had inflicted on the state, not these guys. Kenny & Gilmore, Noonan & Rabbitte, and all the pitiful wretches that followed them into the chamber earlier, campaigned on a platform of knowledge of the damage that had neen done to the country, and pledged a different path. What price those pledges now? They have rendered them worthless, and by their actions since being elected, they have diminished their own collective worth to that of a grubby imitation of Judas. It may take a while, but this is a betrayal that is deeper than those committed before, and one that will not be forgotten when the people are asked to choose again.
And who will we be voting for next time? No matter their hands are tied and there’s nothing anybody can do about it.
Like a lot of others I am in complete despair here, What in the hell have these TD’s done to us and future generations? I watched some of the debate last night/this morning with growing anger. The lack of respect some from the government benches showed for some speakers and those of us watching in was a disgrace. They hadn’t even had time to read the bill let alone get some informed understanding. Most of the electorate are at the end of their tether and all these a….holes can do is laugh at us. They are all ok with their big salaries and pensions but what about the rest of us?
FF also showed their true colours. They sold us down the river for a second time!
So send Quinn can sleep well to night know me and my kids and there kids can pay for all the money he owes the irish ppl , what a joke
He’s just the scapegoat, there’s a whole barrel of snakes at work here.
And they know what they’re doing.
What does it all mean in laymans terms?
In laymans terms? Our kids and grand kids are f****d…
It means that for decades to come Ireland will have higher taxes or lower services or both. If the kids and grandkids don’t like that then their best bet is a good education so they can emigrate somewhere where the government didn’t overspend or guarantee its bust banks.
Then why did they do it? If that’s the downside, what’s the upside? There must have been a reason the chose to do this?
Sovereign Debt? 5 am and Im in despair over this worrying about my kids future. Shame on the 113 who voted yes and why was this only introduced to the opposition at the last minute? Stinks.
Standard shock tactics. Startle people to reduce their ability to think straight then take what you want. A few weeks to consider an apology for decades of imprisonment, torture and enslavement and half an hour to transfer billions of possibly illegal debt onto the sovereign. Stinks is right.
If Edna can’t say it, I will, ‘F*ck off Europe’
At last Enda has managed to make a decision ( albeit forced upon him by money men ) . Now he has to admit that he has f***ed this country up and STOP blaming previous governments . This is his choice , he called it . Farewell Ireland , I will miss you .
Here’s to 50 more years of mass emigration.
What a joke they make a bet they lost and get their money back I make a bet I lose and get laughed at when I ask for my money back what a joke of a government are they blind its not my fault those gangsters (bankers builders and courrupt government members ruined the bankung sector in this country so why should myself and children and grandchildren suffer and not one of them will be locked up for ecconmic treason bunch of cowboys running this country ….
I respect Shane Ross,so if he votes against,it is not right.
What will become of my lovely country that was full of happiness and joy???
Enda will be blaming everyone except himself and his shower in news reports I bet.
They would blame Mother Teresa if they could for everything.
First he doesn’t apologise on behalf of the government for Magdelane . Now this.
No bloody backbone.
20 odd years to approve legislation for the X Case but only a couple of hours when it’s suits them !! I hope their as quick when it comes to Abortion / Gay Marriage or any other issues on front of them other than a pay rise !!!
I think the only agreement you’ll get there will be to abort gay marriages.
There is absolutely nothing bigoted about my comment. I am 100% pro-choice, and 100% pro- marry whoever the hell you want.
I think you miss-read it.
So my limited understanding of the consequences of this.
Getting rid of Anglo… Good.
Incorporating Anglo & its debts into NAMA…. Bad.
Not having to pay promissory notes later this year…. Good.
Anglo debts being part of government debt & no longer be able to write them down…… Very, very, very bad.
Does that about cover it?
Also, the sprinkles contain potassium benzoate… That is bad.
Can we do an Iceland now please.
Surely giving the Minister for Finance the power to decide and make something sovereign debt is unconstitutional? If its affecting how national monies are spent should it not be decided by the Government as a whole??? Michael D please make an Art 26 referral on this
I give up, this Government have no balls, after five years of austerity, transferring debt over to NAMA, the faceless, not accountable to anyone organisation will still be at an enormous cost to us the tax payer, it’s what they are not telling us I would worry about, sneaking way of doing business
The government moved swiftly to protect the tax payer last night and the ECB deal. They are to be commended. But instead, people now move on to the kids nonsense. There was national debt when you were born. There will always be national debt. National debt never gets paid…
So why the promissory notes? Using your logic it wont matter if they get repaid or not. But it is such a big deal that we had last nights appalling spectacle ftom Merkels leprechauns, and Honohan snivelling towards the ECB today begging for some crumb from the table. Excruciating stuff, none of which adds up to the debt not being repaid. For this debt, somebody will pay somewhere. Guess who?
David McWilliams says its a bad idea.
Therefore it’s probably a bad idea.
Here Europe, catch this hot potato! Back where it belongs.
A tad overdramatic don’t you think
I guess I am in a minority in thinking that they have acted pragmatically and tried to salvage something from the wreckage, taking the least worst option.
Someone at the ECB leaked the negotiation details forcing the government to act but this may have been orchestrated.
In the long term we do pay more but at least the pain is spread out and more manageable.
Over time with inflation the debt level is effectively lower, is it not?
In the short term, the need for painful budget cuts should be greatly reduced.
This may give the economy some impetus to grow and with a return to economic health the repayments will be obviously manageable.
Rip ireland
I feel sorry for all those who fought and gave up their lives for this place only to have it handed on a plate to europe !
Germany once tried taking over europe by force now they dont need to they have us poor countries right in the palm of their hand and all they need do is finish us off !
Enda and Gilmore must share the same pair of Ba!!s. Yes Europe no Europe. They’d gain more support if they told Europe to F off and do what Iceland did!!!!
So with this act the repayments to Europe have changed ? ? Will those fighting the croke park pay cuts be in a better position now to receive a fair wage for services and work rendered or have they totally screwed up all public payments and tax brackets for a long time to come. Genuine questions?
Converting private debt to sovereign debt sure it only took 5 years. Let the banks keep on gambling, nothing to see here only stupid paddies getting royally screwed. Good work ffg lab greens.
Why appoint a liquidator , more taxpayer money wasted, it should have been included in the law last night that it was exempt from the co act for the need for a liquidator , the debt is our kids to pay and their kids shame on our politicians .
Double post admin pls delete thank you.
Will the 800 staff be entitled to redundancy??
no..why would they
Just wondering what kind of contract they would have had? i.e will it cost the state more money in the process of letting them go/rehiring or would they all have been on short term contracts??
does this mean poor AlanDukes is out of a job.
History will recall in these traumatic times, not the strident efforts of the bad, but ‘The appalling silence of the good’.
I’m afraid Reverend King is wrong in this. History definitely remembers the awful deeds of Hitler, Mao and Stalin more than the silence of the citizens.
I think your missing my point completely!!!
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