Mayor calls for boycott of banks for raising rates

AN angry mayor of Clare has called for a complete boycott of Irish banks in light of yesterday’s decision by the Bank of Ireland and EBS to raise interest rates.

Councillor Tony Mulcahy wants customers to retaliate by withholding mortgage payments, withdrawing bank savings and demanding that employers provide all wage payments in cash.

Mr Mulcahy said the actions should be taken if Finance Minister Brian Lenihan does not impose a moratorium on interest rate hikes. The mayor confirmed he will present his motion at Monday’s monthly meeting of Clare County Council.

He added that the recent spate of interest rate hikes by AIB and Bank of Ireland were unsustainable for mortgage holders who were “paying on the double” for the re-capitalisation of Irish financial institutions.

The Fine Gael councillor pointed out that his call for retaliatory measures against banks was not politically driven but was borne out of growing public anger over what he described as “the banking sector’s complete disregard for the Irish taxpayer and the Irish economy”.

“The fact that Bank of Ireland’s latest mortgage interest rate increase follows just 24 hours after the European Central Bank announced it was keeping eurozone interest rates unchanged at 1%, is nothing short of scandalous,” said Mr Mulcahy. “It is an insult to every taxpayer in this country that Bank of Ireland has announced the move in a week when the bank’s initial tranche of commercial property loans were transferred.

“The bank’s claim that the cost of funding mortgages has become increasingly costly is an insult to taxpayers who are footing the bill for the re-capitalisation of the banks. In essence, taxpayers are paying on the double. These banking institutions have bled this country dry and should not be allowed to continue their reckless behaviour.

“The only way of making them sit up and listen is to stop the cash flowing through the banking system,” he added.

The mayor has set up a Facebook page, Punish the Banks, for those wishing to join his call for Mr Lenihan to impose a moratorium on further rate increases.