e2.25 billion euro Bond Payment Made Today to Anonymous AIB Bondholder. Media Coverage?

[unspecific]

A bond worth 2.25 billion euro is being paid today from the public finances to an anonymous AIB bondholder. These bonds were being bought up for less than half of the full value, so in effect, the present bondholder will be doubling his/her money. 2.25 billion euro is close to 2% of Irish GDP.

I think this is something people should reasonably expect to be informed of by their state and or national media. I can't find any instances of it being reported. In any case, anyone reading this should spread news of it in any way they can.

http://bondwatchireland.blogspot.com/2012/05/dirty-dozen-we-jun-3rd-2012.html


In Ireland we know the damage done by that monster. Over €100bn our banks have so far been forced to pay in failed bonds; €62.8bn we - the Irish people - have so far contributed to those banks, and it's not over yet. €40bn the banks say they still have to pay in bonds; we say €55bn but sure who's counting? Certainly not anyone in RTE, TV3, no-one in national radio, barely a murmur from our national newspapers - where have you heard or read about the €2.25bn AIB bond due today, a bond taken out in May 2008 when the bank was privately owned?

Today's bond is part of 2012's program of bond payments worth 20 billion euro. It is also recognized as the national debt. In 2013, a further 17 billion euro will be handed over to private bondholders who took a punt on corrupt Irish banks and lost.

Should the Fiscal Treaty pass, I assume it means under the national debt repayment clause, bondholders will be able to rule out haircuts as unconstitutional and against international law.

[C. Flower]

Just posted beside you on the Bondwatch thread -


Over €100bn our banks have so far been forced to pay in failed bonds; €62.8bn we - the Irish people - have so far contributed to those banks, and it's not over yet. €40bn the banks say they still have to pay in bonds; we say €55bn but sure who's counting? Certainly not anyone in RTE, TV3, no-one in national radio, barely a murmur from our national newspapers - where have you heard or read about the €2.25bn AIB bond due today, a bond taken out in May 2008 when the bank was privately owned?

Would you quote this clause ? -



Should the Fiscal Treaty pass, I assume it means under the national debt repayment clause, bondholders will be able to rule out haircuts as unconstitutional and against international law.
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[unspecific]

Just posted beside you on the Bondwatch thread -



Would you quote this clause ? -

.
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To repay the 1/20th of our national debt above 60% of gdp in a year where there is no gdp growth, essentially obliges us to pay down these bonds. It wouldn't be possible to say roll it over. It must be paid.

[C. Flower]

To repay the 1/20th of our national debt above 60% of gdp in a year where there is no gdp growth, essentially obliges us to pay down these bonds. It wouldn't be possible to say roll it over. It must be paid.

A very important point, if correct, that everyone would need to be aware of when voting.

[C. Flower]

Is this the article ?


ARTICLE 4

When the ratio of a Contracting Party's general government debt to gross domestic product exceeds the 60 % reference value referred to in Article 1 of the Protocol (No 12) on the excessive deficit procedure, annexed to the European Union Treaties, that Contracting Party shall reduce it at an
average rate of one twentieth per year as a benchmark, as provided for in Article 2 of Council Regulation (EC) No 1467/97 of 7 July 1997 on speeding up and clarifying the implementation of the excessive deficit procedure, as amended by Council Regulation (EU) No 1177/2011 of 8 November 2011. The existence of an excessive deficit due to the breach of the debt criterion will be decided in accordance with the procedure set out in Article 126 of the Treaty
on the Functioning of the European Union.

Would a haircut not reduce it ?

[unspecific]

Is this the article ?



Would a haircut not reduce it ?

EU Commission policy is that bonds cannot even be bought back for what they are trading for. If a bond originally sold for X is now being traded for a tenth of that value, a government would still have to pay the full original value. The fiscal treaty hands budgetary power over to the EU Commission. If these rules are breached, I understand the European Court of Justice can intervene and sanction a member state.

[C. Flower]

EU Commission policy is that bonds cannot even be bought back for what they are trading for. If a bond originally sold for X is now being traded for a tenth of that value, a government would still have to pay the full original value. The fiscal treaty hands budgetary power over to the EU Commission. If these rules are breached, I understand the European Court of Justice can intervene and sanction a member state.



ARTICLE 7

While fully respecting the procedural requirements of the Treaties on which the European Union is founded, the Contracting Parties whose currency is the euro commit to supporting the proposals or recommendations submitted by the European Commission where it considers that a Member State
of the European Union whose currency is the euro is in breach of the deficit criterion in the framework of an excessive deficit procedure. This obligation shall not apply where it is established among the Contracting Parties whose currency is the euro that a qualified majority of them, calculated by analogy with the relevant provisions of the Treaties on which the European Union is
founded, without taking into account the position of the Contracting Party concerned, is opposed to the decision proposed or recommended.

Would you have the definition of "the deficit criterion in the framework of an excessive deficit procedure."