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EU Commission says it has received no Irish proposal on burning senior bondholders

A commission spokesperson says no plans have been put before it, even though the government says burning the bondholders has been in the pipeline for some time.

THE EUROPEAN COMMISSION says it has not received any proposal from Ireland on plans to burn senior bondholders at Anglo Irish Bank and Irish Nationwide.

Commission spokesperson Amadeu Altafaj was asked about the Irish proposal during a news briefing and said there would be no speculation about a possible impact on the markets, as no correspondence on the issue had been recieved reports Reuters.

The finance minister Michael Noonan announced during a trip to Washington this week that the government would seek to impose significant losses on senior bondholders at the two banks.

Speaking today during the 100 days press conference at Government Buildings Tánaiste Eamon Gilmore said:

The issue of senior bondholders is something that is longstanding government policy. We have been very clear from the beginning that our objective has been to deal with bank debt in a way that would minimise the impact on the Irish taxpayer.

The European Commission has said it will examine any proposal by the government on the restructuring of the banks with the ECB and the IMF. The plan will need to be agreed by the European Central Bank.

Read more: Finance Minister announces plans to try to burn senior bondholders>

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About the author:

Emer McLysaght

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