How
another country forced to fall to the ECB trap
Senior
European and European Central Bank (ECB) officials agreed to threaten
Ireland with national bankruptcy if the government made any attempt
to burn bondholders, according to the Sunday Independent
“The
threat was made at a high-level teleconference meeting, details of
which have been revealed for the first time by the Central Bank
governor, Dr Patrick Honohan.”
“'The
Troika staff told Brian [Lenihan] in categorical terms that burning
the bondholders would mean no programme and, accordingly, could not
be countenanced,' Dr Honohan writes. 'For whatever reason, they
waited until after this showdown to inform me of this decision, which
had apparently been taken at a very high-level teleconference to
which no Irish representative was invited.'”
“In one
extract, Dr Honohan reveals that the Troika appeared to be
considering 'burning' some senior bondholders in the negotiations
which followed Ireland's application for a bailout.”
“Dr
Honohan was involved in the ECB decision to press Ireland to ask for
a bailout and supported it, because of the enormous growth in
emergency loans from the Central Bank to the banking system from the
middle of September. He says government reluctance to apply for a
programme explains his dramatic interview on RTE's Morning Ireland on
November 18, 2012, saying that Ireland would go into a bailout, but
he did not realise other cabinet ministers had not been kept informed
of what was happening.”
More:
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also:
Latest news from the occupied Greece: Troika dictates the closing of three state industries through an email! Neoliberal dictatorship in full action!
It is certain that the Troika
mafia blackmailed Greek officials to accept the suggested programme
and probably promised to "burn" some senior bondholders,
as in the case of Ireland, in order to make the Greek government to
accept the program more willingly.
When Greece fell in the trap,
things changed rapidly: the government left the deposits of
universities and hospitals unprotected, allowing their massive
conversion in Greek bonds by the Bank of Greece, just before the new
bond haircut PSI program, bringing huge losses in their stocks, while
minor bondholders who put all their savings in Greek bonds, lost
their money. Senior bondholders, mostly German and French banks,
saved all their money through the program terms while the Greek banks
were bailed out with billions of taxpayers' money.
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