Cantillon: Chopra charm fails to conceal cold reality

Ajai Chopra returned to Dublin this week to give evidence at the Oireachtas banking inquiry in a voluntary capacity. It’s five years since Chopra led the International Monetary Fund delegation in its talks with the Government and the European Union on a financial assistance programme for Ireland.

He did so with a warm smile on his face with the IMF proving to be much more effective in its communications strategy than either the European Commission or the EU in delivering the bad news of the bailout to the Irish public. Michael Noonan jokes that Chopra could sit on a dozen eggs without breaking any of them.

Much has changed in the interim and it was apt that while Chopra was giving his testimony, the Government was revealing that it expects the Irish economy to grow by 6 per cent this year.

Chopra has lost none of his communication skills. In his opening remarks, he had a clear pop at the European Central Bank, whose emergency liquidity support following the global financial crash was only “grudgingly provided”.

He also reminded the committee that the IMF staff wanted to impose haircuts on the senior unguaranteed bank creditors in 2010 but the ECB blocked the move, with support from the commission.

And Irish taxpayers were forced to bear too high a burden in the aftermath of the crash, according to Chopra.

That’s all very well but the IMF ultimately signed off on the €85 billion bailout package, which took billions of euro out of our economy and resulted in years of austerity and hardship for Irish citizens. The effects will be felt for years to come.

Chopra wouldn’t comment on it at the inquiry, but it’s well known that the IMF backed off the idea of burning bondholders following opposition from US treasury secretary Tim Geithner. The US has a loud voice at the IMF table.

Chopra might no longer work for the IMF but he bears some of the responsibility for those decisions and no amount of charm or communications spin can alter that reality.