‘Bizarre’ for Israel to use Ireland as home country for bonds, Central Bank says
The Governor of the Central Bank of Ireland, Gabriel Makhlouf, described it as 'bizarre' for Israel to designate Ireland as the home state for its EU bonds, given they are not marketed there. He stated the bank must adhere to current EU regulations but is reviewing compliance, amidst criticism that approving the bonds implies complicity with Israel's military operations in Gaza.
Why it matters
This issue highlights the complex interplay between international finance, regulatory frameworks, and ethical considerations, particularly concerning investments linked to conflict zones. It could prompt changes in EU prospectus regulations and impact Ireland's financial reputation.
It is "sort of bizarre" for Israel to have Ireland as the home state for its bonds in the EU , the Governor of the Central Bank said, noting they are not marketed in the country "at all".
However, Governor Gabriel Makhlouf said the EU would need to update its regulations for that to change - as he committed to continuing to "follow the law" when carrying out its duties in relation to the bonds.
He indicated the Central Bank may again have a role in approving Israel bonds upon their potential renewal in September or in moving that process to another country - similar to what happened last year.
He said the authority is keeping its compliance with international law in handling prospectuses for Israel bonds "under review", but added it was in "no doubt" that it complied with its obligations thus far.
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