The Central Bank of Ireland (CBI) has claimed it doesn’t have the authority to stop facilitating Israeli bond sales – but failed to consider the International Court of Justice's (ICJ) January ruling that Israel may be committing genocide in Gaza.
CBI in a letter to the Oireachtas finance committee said it “falls outside the competencies” of the bank to assess whether genocide is taking place and that only EU sanctions or Irish government restrictions would empower it to prevent the sale of the bonds.
The bank's letter, issued in response to questions from the committee in October, doesn't refer to the ICJ's January ruling, which found "plausible" evidence of genocide and ordered Israel to prevent genocidal acts.
Israel markets the bonds as a way to support its onslaught on Gaza – with a banner on the site selling the bonds reading “Israel is at war” – and their sale continues through Ireland.
Central Bank: bond prospectus ‘not misleading’
Central Bank governor Gabriel Makhlouf in the letter said Israel’s prospectus to sell the bonds meets its legal requirements and isn’t misleading. CBI last approved an Israeli bond prospectus in September with previous supplements approved in February and June – all after the International Court of Justice's January ruling.
Israel asks investors to "make a statement" by purchasing the bonds with president Isaac Herzog addressing potential buyers in a video about the “crucial role of Israel Bonds during this time of conflict and war”. CBI says it reviewed this material and found it consistent with the bonds’ prospectus.
Had CBI identified inconsistencies between how the bonds were advertised and the information in their prospectus, it could suspend sales for a maximum of 10 days.
Israel’s bond prospectus, CBI said, “contains all necessary information” as required under the relevant regulations. CBI said in the letter the prospectus included "extensive reference to the war in Gaza”.
CBI’s letter didn’t mention the January ICJ ruling that found Israel may be committing genocide in Gaza. The correspondence focuses on a July ICJ advisory opinion about Israel's presence in occupied Palestinian territory, which CBI said isn’t grounds for refusing the bonds.
The bank also said ongoing ICJ proceedings, which include allegations of the crime of genocide, “do not constitute grounds for the Central Bank to refuse the sale of Israeli bonds”.
Makhlouf said CBI is monitoring the progress of the Occupied Territories Bill. In September The Ditch reported that Paschal Donoghue held a secret phone call with the Israeli finance minister and promised the state would block the bill.
Makhlouf’s letter comes after questioning at a 9 October hearing of the Oireachtas finance committee that referenced the Israeli bond programme and CBI’s oversight role.
CBI has been contacted for comment.
