AFRICAN COMMUNITY representatives are lending their support to a campaign to halt the repayment of Anglo Irish Bank’s debt.
The Africa Centre in Dublin is supporting the Debt Justice Action network’s call for the suspension of Anglo repayments “as a first step towards renegotiation and write down of this debt”. The Migrant Rights Centre Ireland (MRCI) is also supporting the campaign.
Last week, the Government proceeded with the controversial repayment of €1.25bn to the bank’s senior unguaranteed bondholders.
The bulk of outstanding re-payments concern Govern-ment-issued “promissory notes” – a promise to pay money back in future – which it has used to recapitalise Anglo and will cost Ireland over €30bn during the next 20 years.
The campaign proposes that all payments to Anglo creditors be suspended pending negotiations until a write down of the debt is agreed. It says Anglo repayments will have reached €47bn by 2031, which could rise to €85bn incorporating interest on borrowings for the repayments.
Campaign spokesperson Andy Storey claimed the suspension of Anglo payments would not spread contagion through the European financial system as most of the Anglo debt is owed to central banks and Anglo is a problem isolated from the ‘pillar’ Irish banks.
Mbemba Abdulie Jabbi, programme officer with the Africa Centre, said a facet of its involvement is “to let people know that African immigrants are also taxpayers” and they are affected by austerity measures just as much as anyone else.
Jabbi added that there was a need to “challenge the language often used in the media and in Government reports” making reference to Irish nationals alone and not long-term residents. “Most Africans working here are non-Irish nationals, and we need to change the language in order to include them by saying ‘people of Ireland’ or ‘people in Ireland’ to be inclusive of all taxpayers,” he said.
The troika of the IMF, EU and ECB are reportedly working on a common paper on a potential restructuring of the promissory notes the State has used to bail out the former Anglo Irish Bank (Irish Bank Resolution Corporation).
- Meanwhile, the Minister for Justice has announced Government approval of the heads of a new Personal Insolvency Bill and his proposals for its drafting.
Minister Alan Shatter said the bill “will radically reform our insolvency legislation” by introducing new mechanism for resolving debt, in the interests of both debtors and creditors, to address the difficulties of the current economic crisis – and mortgage arrears in particular.
According to the minister, his proposals will involve the introduction of new debt settlement systems, including a debt relief certificate to allow for a full write-off of unsecured debt up to €20,000; a debt settlement agreement for unsecured amounts topping €20,000; and a personal insolvency arrangement for agreed settlements of both secured and unsecured debt of €20,001 or over.
The minister said that he will also continue reform of the Bankruptcy Act 1988 begun last year. This will include the introduction of automatic discharge from bankruptcy (subject to certain conditions) after three years, in place of the current 12 years.
“I am of the view that new personal insolvency laws, including the reform of our bankruptcy law, should provide a significant incentive for financial institutions to now better develop and implement realistic agreements to manage or settle debt with their customers,” said Minister Shatter.
- Staff Reporter
