Sinn Féin Finance spokesperson Pearse Doherty has said the decision to extend the maturities on Ireland’s loans amounts to “putting a sticking plaster on a gaping wound”.
He said the government must not be left off the hook on the issue of separating banking and sovereign debt as promised following a decision today to allow both Ireland and Portugal to extend their loan deals for a further seven years.
Deputy Doherty said: “Last month Minister Noonan was looking for a fifteen year extension. Now we understand only seven years is on offer. Unlike Greece the government has failed to get an interest holiday which would actually make a difference to people’s lives.
“Regardless of the period of the loans the fact is that Sinn Fein’s analysis of the original bailout terms as unsustainable has been proven to be correct.
“As long as there is no growth in the economy and no job creation Ireland will be threading water and reliant to some extent on outside help.
“This government has failed to follow-up on last June’s Eurogroup commitment to separate banking and sovereign debt. It has actually taken in more formal sovereign debt in the Promissory Note arrangement and has been complicit in forcing Cyprus to fend for itself. It must explain why.
“Once more, we are being exposed to government spin on Ireland’s prospects. The fact remains there has been zero progress on separating banking and sovereign and retrospectively recapitalising Ireland’s banks. As long as that is the case any measures to extend maturities amount only to a sticking plaster on a gaping wound.”
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