Committee for the Abolition of Illegitimate Debt

An application has been lodged on December 16, 2012, with the offices of the Guinness Book of Records to recognise Ireland’s as the World’s Most Expensive Bank Bailout, per capita. The World’s Most Expensive Bank Bailout bid is being submitted by the campaign group Debt Justice Action, on behalf of all of the people in Ireland who, the group claim, will each pay €16,500 to make this record attempt a reality.

Vicky Donnelly, Development Officer, who filled out the application, said:

“The application was submitted online, detailing how much Ireland has poured into the banks. We included supporting documents from the most recent IMF IMF
International Monetary Fund Along with the World Bank, the IMF was founded on the day the Bretton Woods Agreements were signed. Its first mission was to support the new system of standard exchange rates.

When the Bretton Wood fixed rates system came to an end in 1971, the main function of the IMF became that of being both policeman and fireman for global capital: it acts as policeman when it enforces its Structural Adjustment Policies and as fireman when it steps in to help out governments in risk of defaulting on debt repayments.

As for the World Bank, a weighted voting system operates: depending on the amount paid as contribution by each member state. 85% of the votes is required to modify the IMF Charter (which means that the USA with 17,68% % of the votes has a de facto veto on any change).

The institution is dominated by five countries: the United States (16,74%), Japan (6,23%), Germany (5,81%), France (4,29%) and the UK (4,29%).
The other 183 member countries are divided into groups led by one country. The most important one (6,57% of the votes) is led by Belgium. The least important group of countries (1,55% of the votes) is led by Gabon and brings together African countries.

http://imf.org working paper, which recognises Ireland as having the, “costliest banking crisis in advanced economies since at least the Great Depression”. We expect to hear back from Guinness Book of Records within 4 – 6 weeks”

In terms of competition, the only comparable bank-related record listed by Guinness concerns the theft of $70 million from the Banco Central in Brazil in 2005 In that case, people removed large sums of cash from a bank, whereas the money in Ireland’s record-breaking attempt is going in the opposite direction. What the two records do have in common is that the culprits remain at large, and the money has yet to be recovered.

It is estimated that at least €67.97 billion has been poured into Irish banks so far, representing 45% of GDP GDP
Gross Domestic Product Gross Domestic Product is an aggregate measure of total production within a given territory equal to the sum of the gross values added. The measure is notoriously incomplete; for example it does not take into account any activity that does not enter into a commercial exchange. The GDP takes into account both the production of goods and the production of services. Economic growth is defined as the variation of the GDP from one period to another. , which came to €156.4bn in 2011 though DJA argue that the nature of Ireland’s economy makes the figure of 56% of GNP Gross National Product
GNP The GNP represents the wealth produced by a nation, as opposed to a given territory. It includes the revenue of citizens of the nation living abroad. , €123.9bn in the same year, more relevant.

Of the €70 billion, one single institution, the infamous Anglo Irish Bank, accounts for over €30 billion of socialised debt. When the interest Interest An amount paid in remuneration of an investment or received by a lender. Interest is calculated on the amount of the capital invested or borrowed, the duration of the operation and the rate that has been set. is factored in, this will cost Ireland €47 billion, or the equivalent of €26,000 per person working for pay or profit Profit The positive gain yielded from a company’s activity. Net profit is profit after tax. Distributable profit is the part of the net profit which can be distributed to the shareholders. in the country.

Vicky Donnelly: Debt Justice Action / 0872645344 /www.notourdebt.ie

Notes:

IMF working paper [pages 19 - 20]:
http://www.imf.org/external/pubs/ft/wp/2012/wp12163.pdf
IMF (June 2012) Working Paper; Systemic Banking Crises Database: An Update Prepared by Luc Laeven and Fabián Valencia

Banco Central robbery:
http://www.guinnessworldrecords.com/world-records/1/greatest-robbery-of-a-bank

GDP figures:
http://www.cso.ie/en/media/csoie/releasespublications/documents/latestheadlinefigures/qna_q42011.pdf
CSO Quarterly National Accounts Quarter 4 2011 and Year 2011 (Preliminary)

Breakdown of €70 banking costs:
Michael Noonan’s written answers on Bank Guarantee Scheme (26^th April, 2012)
http://www.kildarestreet.com/wrans/?id=2012-04-26.961.0

Opening Address by Mr. Brendan McDonagh, Chief Executive of NAMA, to the Public Accounts Committee (5^th July, 2012) http://namawinelake.files.wordpress.com/2012/07/pac5jul12.pdf

Source: Contact.ie