We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

Julien Behal/PA Archive/Press Association Images

€1.5billion to be paid to senior AIB bondholders today

Independent TD Stephen Donnelly has described the payment as “criminal”.

AIB WILL TODAY pay over €1.5billion in unsecured debt to senior bondholders, in a move that is effectively financed by the taxpayer.

Payment is due on a bond issued in 2007 by the bank, which has since been taken into State ownership.

The sum is larger than the the €1.25billion repaid to bondholders in the now-defunct Anglo Irish Bank in January.

The payment has come in for criticism from opposition politicians. Independent TD Stephen Donnelly called it “criminal”, saying it amounted to several multiples of the controversial household charge:

According to NAMAWineLake, the bailing out of AIB has so far cost taxpayers €20.7billion.

Senior debt is debt that takes priority – ie has to be repaid first – over ‘junior’, or subordinated debt. It is called unsecured because it is not tied to specific assets, as a mortgage debt is tied to a property.

More: Government to pay €1.25bn to Anglo bondholders today>

Your Voice
Readers Comments
    Submit a report
    Please help us understand how this comment violates our community guidelines.
    Thank you for the feedback
    Your feedback has been sent to our team for review.