Promissory Notes: Explained




Jaunty, soothing music by David Löhstana.

Rehn Rules Out Irish Delay In €3.1bn Bank Debt Repayment (Arthur Beesley, Irish Times)

8 thoughts on “Promissory Notes: Explained

  1. Jockstrap


    Investors take a gamble.
    It doesn’t work.
    We pay them anyway.
    Old people have pensions cut.
    Sick children lose carers.
    Public projects are cancelled.
    People commit suicide.

  2. DazedandConfused

    Look at Spain today – they said they couldn’t introduce the kind of austerity measures the Troika wanted … so THEY WON’T. Why so can’t wesaid we won’t pay off these promissionary notes. I know there are two different things but still. I mean after nearly four years I still don’t understand – it’s not my flipping debt its the banks. Why are we meant to be the good little country when no one else seem to give a flying fiddlers. What’s wrong with the current crowd in Government – are they too busy pretending everything is going to be just fine cosying up to our European overlords…?? or perhaps they just don’t have the nerve to do it. It’s ridiculous. Grow a pair FG and Labour.!!!

  3. diddy

    Tell us something we dont know eh? For example the course of action we would take if we told these parasites to go and whistle for thier money? Really.. what is the other way.

    1. stevestrange

      @diddy: This is from the campaign’s website:

      “What other option do we have?

      The Irish government could suspend the promissory note payments in order to negotiate a write down of the €30.6 billion capital repayments.

      What are the risks in debt suspension?

      1. There are risks. However, the main risk commonly cited that the ECB would ‘cut off funding to our pillar banks’ is simply not plausible as the pillar banks are being maintained to avoid contagion; a contagion that would spread to the core-EU economies if the ECB precipitated their collapse (and they would collapse without ECB funding). Why would the ECB take action to precipitate the very outcome they have been desperately trying to avoid since 2008?

      2. Loss of investor confidence – With Government bonds rated as junk, and given that we are not in the international market, this risk is in many respects academic. If anything, it would probably help since we would need less funding and would have less of a debt/interest payment burden.
      This is likely to impress the ‘markets’ more.

      3. Would there be a retaliation by the troika? – Promissory note repayment is not a condition of the EU/IMF Memorandum of Understanding agreed with the troika and would therefore not directly affect the loan agreements.”

    2. ivan

      “‎”It was a dashed tricky thing, of course, to have to decide on the spur of the moment. I was reading in the paper the other day about those birds who are trying to split the atom, the nub being that they haven’t the foggiest as to what will happen if they do. It may be all right. On the other hand, it may not be all right. And pretty silly a chap would feel, no doubt, if, having split the atom, he suddenly found the house going up in smoke and himself torn limb from limb. ”

      Replace “atom splitting” with “telling bondholders to get fucked”.

      that’s the problem.

      (From Right Ho Jeeves by PGW)

  4. John Maguire

    Is the Devil a bondholder? If so, screw him. But is he a minor part of a pension fund, some charitable organisation? Does it matter? Were they not all gullible and greedy? Maybe not individually, but “I didn’t realise…..” doesn’t hold water. They all stink. After all, didn’t they have their financial “experts”, economists, special advisors etc? Equally culpable, if not more so, are our politicians (with their special advisors!!) and senior civil servants, who should have known what was coming down the line. Are we a nation of thickos to put up with this! Have we no spirit or courage to say – ” so far and no further. I sometimes wonder about Germany after 1933 and how they handled the impositions of the Versailles Treaty. Two Big Fingers I recollect!

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