EU Regulations

Wednesday, 15 April 2015

Questions (172, 177)

Terence Flanagan

Question:

172. Deputy Terence Flanagan asked the Minister for Finance if legislation will be introduced in relation to vulture funds (details supplied); and if he will make a statement on the matter. [14756/15]

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Clare Daly

Question:

177. Deputy Clare Daly asked the Minister for Finance if he will advocate the introduction of legislation in all European Union Member States to prevent vulture funds from claiming more than other lenders in the case of sovereign debt crisis. [14789/15]

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Written answers

Minister for Finance

I propose to take Questions Nos. 172 and 177 together.

There are no proposals at an EU level to legislate regarding the actions of so called "vulture funds" in the case of sovereign debt crises. Ireland along with all Eurozone members now includes Collective Action Clauses (CAC) in the sovereign bonds it issues. Such clauses provide for a standardised mechanism for the renegotiation of the debt instruments in certain circumstances. The clauses are designed to deal with default in a structured fashion and prevent minority investors "holding out" for a better pay-out than the majority.