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Ireland's Prime Minister Enda Kenny leaves for a break during an European Union leaders summit meeting discussing the European Union's long-term budget in Brussels February 8, 2013.
Ireland's Prime Minister Enda Kenny leaves for a break during an European Union leaders summit meeting discussing the European Union's long-term budget in Brussels February 8, 2013.
(Eric Vidal/Reuters)

CARL MORTISHED

Irish bond swap? More like money printing

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In little steps, the central authority of the euro zone is being eroded in favour of the member states. Ireland’s massive debt restructuring at the end of last week has not been approved by the European Central Bank. It has just taken “note” of the Irish government’s decision to issue 40-year bonds to replace €24-billion ($32.4-billion) in promissory notes (government IOUs), created at the height of Ireland’s debt crisis to enable the ECB to lend money to Ireland’s insolvent banks. Anglo-Irish Bank was finally liquidated on Thursday in order to pave the way for the notes-to-bonds swap.