Central Bank of Ireland approval for Israeli bonds will not be renewed after its expiry on Monday, with Luxembourg now authorised to market them in the European Union.
Central Bank governor Gabriel Makhlouf indicated the move on Monday in a letter to the Oireachtas Committee on Finance deputy chairwoman, Sinn Féin TD Mairéad Farrell.
It means the Central Bank will no longer approve European prospectuses for the sale of Israeli bonds that the Development Company for Israel (International) Ltd, which sells debt on behalf of Israel, has been marketing on its website in the context of the country needing funds to fight the Gaza war.
The Central Bank had been under mounting political pressure over its approval for Israeli debt because of anger at Israel’s military campaign in the Gaza Strip, which has led to tens of thousands of deaths in the Palestinian territory and the declaration by the United Nations of a famine.
READ MORE
Mr Makhlouf said in his letter that responsibility for approving the bonds in question had transferred to Luxembourg.
“The Central Bank’s approval of the 2024 prospectus will expire today, 1 September 2025. Accordingly, from 2 September 2025, it will not be possible for the state of Israel to offer bonds under the 2024 prospectus,” he said, referring to an Israeli bond prospectus issued on in September 2024
“In accordance with the provisions of the prospectus regulation concerning home member states and the transfer of approval (Article 20(8)), the competent authority of Luxembourg approved a new prospectus for the state of Israel today, 1 September 2025 (the 2025 prospectus).
“Accordingly, from 2 September 2025, it will not be possible for the state of Israel to offer bonds under the 2024 prospectus,” he said, adding that regulators in Luxembourg had approved a new prospectus for the state of Israel, effective from Monday.
The Central Bank had consistently said it was legally obliged to approve prospectuses once they contain all the necessary information as required under EU prospectus.
Israel traditionally had its European bond prospectuses rubber-stamped in the UK, but turned to the Central Bank of Ireland 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.
A spokeswoman for Minister for Finance Paschal Donohoe said Mr Makhlouf had informed him on Monday about the development.
“There are now no active bond prospectuses approved by the Central Bank of Ireland for the State of Israel.
“As the financial regulator, the Central Bank is independent in its functions from the Government,” said the spokeswoman.
The Ireland-Palestine Solidarity Campaign welcomed the development, with its chair Zoë Lawlor saying, “Today is a huge victory for the people of Ireland who stand resolutely in solidarity with the people of Palestine.”
Sinn Féin leader Mary Lou McDonald said the Central Bank should never have been engaged in facilitating the sale of bonds that are “facilitating of the financing of the genocide of the Palestinian people”.
While emphasising the independence of the Central Bank, a senior Coalition source said the change was a positive outcome arising from how the Government and its agencies had positioned themselves on this issue. The source pointed to the State’s early recognition of the Palestinian State, and its pressure for a review of the trade agreement between the EU and Israel as other examples of that strategy.
“It’s the right decision and a good decision,” said the source. “It is consistent with the calm and reasoned approach that has been taken to achieve the right outcome, rather than the approach of the Opposition.”
People Before Profit Paul Murphy TD said it was the “global Palestine solidarity movement that has achieved this important win”.
Social Democrat TD Gary Gannon said he believed no EU financial institution “should be involved in raising funds which are used to annihilate innocent civilians” and that he was deeply disappointed that Luxembourg would continue to facilitate the sale of the bonds.
