{"id":983,"date":"2016-01-05T12:55:22","date_gmt":"2016-01-05T12:55:22","guid":{"rendered":"http:\/\/republicirelandbank.com\/?p=983"},"modified":"2016-01-05T13:17:43","modified_gmt":"2016-01-05T13:17:43","slug":"aib-and-its-unpaid-debts-isme-blog-posts","status":"publish","type":"post","link":"https:\/\/republicirelandbank.com\/?p=983","title":{"rendered":"AIB and its unpaid debts – ISME Blog Posts"},"content":{"rendered":"

Article from from ISME Blog Posts<\/a><\/p>\n

Word reaches us that someone has turned up the heat at AIB bank. No, not the office thermostat but the intensity of their pursuit of debtors has gone up a notch or ten in the last few weeks we have been told. Though the rest of us may call it the Season of Goodwill, AIB begs to differ. The bank is being far more aggressive in trying to collect overdue loans from ordinary people whose lives, livelihoods and businesses were destroyed by AIB along with other banks. And of course not one person from AIB has ever been charged with this economic treachery.<\/p>\n

This new level of pursuit of loans is sadly all the more ironic because AIB won\u2019t be paying its debts for many years to come. Yesterday, AIB\u2019s CEO, Bernard Byrne, told us that \u201cmanagement is creating a customer-centric, sustainable bank with a sustainable margin which will in time see it fully repay the state\u2019s \u20ac21bn capital injection over a 5-10 year timeframe<\/i>.\u201d Those billions of Euro were lent by us, the taxpayers, to AIB in 2008. So already they are 8 years in arrears with another 10 to go, so 18 years in total. So it\u2019s one law for the banks and one law for Sean Citizen. And remember that AIB is 99.9% owned by the State. The State is kicking Sean. It defies logic.<\/p>\n

And in all of the commentary on the repayment of our money, sometime in the far and distant future, we noticed a rather glaring omission. As far as ISME can tell we are going to lose about \u20ac7 billion on this exercise. We got our \u2018Back of the Envelope\u2019 Man to do some tots for us and he tells us that taking the average figure \u00a0for inflation of 3% into the future, that means for the next ten years the \u20ac21 billion that AIB owes us will be devalued by around 35% given the effects of compounding. That\u2019s \u20ac7 billion that won\u2019t be coming home to us but you can be sure that the Central Bank or the Dept. of Finance won\u2019t be making phone calls over Christmas, or at any other time, warning them to cough up, or else.<\/p>\n

We have a homeless crisis and a housing crisis in this country. But we also have a hidden crisis. That\u2019s the large numbers of business owners who will never retire because of the debts they incurred in their businesses during the crisis. And when we say that they\u2019ll never retire we mean that they will work until they drop, to pay back money to the likes of AIB. That\u2019ll be the same AIB that won\u2019t be paying back its money.<\/p>\n

End<\/p>\n

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Some tout:<\/span><\/strong><\/h2>\n

Some tout the idea of converting AIB into a Public Bank as they are currently 99.9% publicly owned. Looks like they won\u2019t be much use to anyone for 10, 15 or 20 years.\u00a0<\/span><\/strong><\/p>\n

We need new, solvent, ethical, SME and Community focused Community\/Public Banks. This sow’s ear cannot be made into a silk purse unless we are going to wipe out the debt of\u00a0\u20ac21bn they owe us.<\/span><\/strong><\/p>\n

Why go there;<\/strong> we can setup 10 new solvent Regional Public Banks for around \u20ac130m.<\/h3>\n

That’s<\/span> \u20ac130m<\/span> Vs<\/span> \u20ac21bn<\/span><\/strong><\/h2>\n

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