Now Ireland Wants To Take The Hatchet To Senior Bank Bondholders


Photo: Alan Levine via Flickr

Irish finance minister Michael Noonan now wants to impose losses on senior bondholders of Anglo Irish Bank, according to IMF is backing this plan, according to the RTE report.

From the report:

Speaking in Washington DC, where he has been meeting US Treasury Secretary Timothy Geithner and officials from the IMF, Mr Noonan said around €3.5 billion in senior unsecured, unguaranteed bonds issued by Anglo Irish Bank and Irish Nationwide Building Society should have losses imposed on them.

While the IMF may be in support, there’s no word yet from the ECB, whose voice on the matter may be the deciding one. There has been some expectation from investors that the Irish government would turn against senior Anglo Irish bondholders at some point.

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