Tuesday, 28 June 2011
Department of Finance
Michael McGrath (Cork South Central, Fianna Fail)
Question 159: To ask the Minister for Finance his views on whether new legislation is required to impose losses on unsecured, unguaranteed senior bondholders at Anglo Irish Bank and Irish Nationwide Building Society. [17495/11]
Michael Noonan (Minister, Department of Finance; Limerick City, Fine Gael)
I have indicated to the House that, consistent with Government policy, I will raise the issue of burden sharing which will allow for the imposition of loses on unguaranteed and unsecured senior bondholders in Anglo and INBS with the IMF and EU authorities in the autumn. I have also indicated that we will take no unilateral action in this area. While legislation is in place to provided for burden sharing with subordinated debt holders under the Credit Institutions (Stabilisation) Act 2010 there are currently no provisions on the statute book to specifically provided for burden sharing with senior bondholders.