The most recent bond prospectus issued by Israel has been approved by Luxembourg rather than the Central Bank of Ireland, reports RTE.
A document released under the State of Israel’s bond issuance programme confirms that the country has now received authorisation to raise funds in the EU via the Grand Duchy of Luxembourg.
It is believed that today’s update comes as a result of Israel opting to designate Luxembourg as its official EU authority for approving bond prospectuses.
This change follows mounting political pressure from the Opposition and advocacy groups urging the Central Bank not to authorise Israeli-issued prospectuses, reports RTE.
Central Bank Governor Gabriel Makhlouf acknowledged the development in a letter sent today to Mairéad Farrell, chair of the Oireachtas Committee on Finance.
The most recent prospectuses authorised by Ireland’s Central Bank officially expired today, reports RTE.
The bank has stated that it was legally required to approve any documents that satisfied the necessary criteria.
Israel distributes these prospectuses to attract investment in sovereign bonds, a method it uses to secure borrowing.
Previously, the UK approved such documentation for use across the EU, but after Brexit, Israel moved its approval process to Ireland, reports RTE.
Sinn Féin leader Mary Lou McDonald said the Central Bank should have never played a role in the matter.
“The Irish Central Bank, at any stage, should not have been engaged in facilitating the sale of Israeli war bonds, and there is a genocide at play. We are witnesses to that genocide. The Irish Government and state has obligations, active obligations, under the Genocide Convention,” reports RTE.
She said Sinn Féin had earlier introduced legislation in the Dáil to block the Central Bank from aiding Israeli bond sales, and she welcomed the recent shift.
“If they are bringing this to a conclusion, I welcome that, but I would remind them and the Government that they never, ever should have had any hand act or part in the facilitating of the financing of the genocide of the Palestinian people,” reports RTE.
Meanwhile, the Labour Party accused a State body over the weekend of being “tacitly complicit” in supporting Israel’s bond fundraising by authorising the relevant documents.
The Government had maintained its stance that the Central Bank must approve Israel’s documentation if it complied with all required standards, reports RTE.
Earlier this year, the Coalition turned down a private members’ bill brought by Sinn Féin’s Pearse Doherty that aimed to block the Central Bank from authorising such documentation.
Minister for Finance Paschal Donohoe stated that the Government “would not be found wanting” and has urged Israel to adhere to international legal standards.
Just last month, the cross-party Oireachtas Finance Committee urged the Central Bank to reassess its ability to reject future Israeli bond prospectus requests, reports RTE.
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