Members of the Central Bank of Ireland commission in January discussed correspondence it received criticising the regulator’s role in approving prospectuses for Israeli state bond sales amid the Palestinian conflict, according to minutes of the meeting published last week.
However, they agreed to issue responses reflecting correspondence it had previously sent to the Oireachtas finance committee, they said.
That letter, available on the Central Bank’s website, said it was governor Gabriel Makhlouf’s view that the regulator “has to approve a prospectus for the offer of securities to the public where it meets the required standards of completeness, and consistency”.
He added that the law “is also clear that our approval should not be considered an endorsement of the issuer or of the securities”.
The Central Bank was occupied by a group of pro-Palestine activists three weeks ago protesting over what they say is the sale of “Israeli genocide bonds”.
Israel traditionally had its European bond prospectuses rubber-stamped in the UK, but turned to the Central Bank for authorisations after Brexit. The latest information note on its European bond programme, approved by the regulator in September 2023, states that the net proceeds from its programme “are intended to be used for the general financing purposes of” the state of Israel.
However, the agency that sells debt on behalf of Israel, the Development Company for Israel (International) Ltd, is marketing bonds on the home page of its website in the context of the country needing funds to fight the Gaza war.
“Israeli president Isaac Herzog is rallying for unwavering support for the Jewish state and emphasises the crucial role of Israel Bonds during this time of conflict and war,” according to a post currently on the home page of the website, which links to a speech from the president.
Sinn Féin finance spokesman Pearse Doherty and Independent Senator Alice-Mary Higgins highlighted to Mr Makhlouf in October, when he appeared before the Oireachtas committee, that clauses of the prospectus legislation may give the Central Bank “wiggle room” to allow it to review its ongoing authorisation.
Mr Makhlouf subsequently said in his written response that the prospectus documentation for the Israeli bond programme “contains all the necessary information as required under the prospectus regulation”.
He said that the processes of the International Criminal Court, which has an arrest warrant out against Israeli prime minister Binyamin Netanyahu and his former defence minister for alleged crimes against humanity in Gaza, “do not constitute grounds for the Central Bank to refuse the approval of the Israeli bond programme”.
